HVAC Service
the Following Transactions Occurred During November:
Nov $\quad$

question 64

Multiple Choice

HVAC Service
The following transactions occurred during November:
Nov. 1 $\quad$ The company sent bills to clients for services provided in August in the amoun of $\$ 12,000$ .

Nov. 9 $\quad$ The company purchased office equipment of $\$ 4,000$ and office supplies of $\$ 150$ from Office Depot, receiving an invoice for $\$ 4,150$ . None of the office supplies were used during November.

Nov. 15 $\quad$ The company paid for the office furniture and supplies purchased from Office Depot.

Nov. 23 $\quad$ The company received a $\$ 350$ bill from CKRP Radio for advertising. The bill will be paid next month.

Nov. 30 $\quad$ The company paid salaries of $\$ 2.500$ to employees.
-Refer to the figure HVAC Service.The journal entry to record the bills sent to clients will include a debit of $12,000.What account will be debited?

• A) service revenue
• B) cash
• C) accounts receivable
• D) retained earnings

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Definitions:

Creating Budget

The process of planning and allocating financial resources over a specific time period, ensuring funds are available for intended activities.

Controlling Inventory

The practice of overseeing and managing the ordering, storage, and use of components that a company will use in the production of the items it will sell, as well as the managing of quantities of finished products for sale.

Selecting Suppliers

The process of identifying, evaluating, and choosing among prospective vendors who can provide goods or services to the company.

Product Layout

A manufacturing configuration in which equipment and workstations are arranged according to the sequence of operations for a specific product.