A Law Firm Collected $1,800 in Advance for Work to Be

question 226

Multiple Choice

A law firm collected $1,800 in advance for work to be performed in three months.Which of the following general journal entries will the firm make to record this transaction?

• A)Debit Accounts Receivable,$1,800; credit Unearned Legal Fees Revenue,$1,800.
• B)Debit Cash,$1,800; credit Unearned Legal Fees Revenue,$1,800.
• C)Debit Legal Fees Revenue,$1,800; credit Accounts Receivable,$1,800.
• D)Debit Accounts Receivable,$1,800; credit Legal Fees Revenue,$1,800.
• E)Debit Cash,$1,800; credit Accounts Receivable,$1,800.

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Definitions:

Long-run Cost Function

A representation of the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Marginal Cost Function

A mathematical representation showing how the cost of producing one additional unit changes as production volume changes.

Market Price

The ongoing rate at which a commodity or service can be purchased or sold within the market.

Model Penal Code

A set of criminal laws developed as a guideline to standardize legal proceedings and penalties across the United States.