ABC Catering Received $800 Cash from a Customer for Catering $$\begin{array} { | l | r | r | } \hline \text { Cash } & 800 & \\\hline \text { Unearned Catering Revenue } & & 800 \\\hline\end{array}$$

question 249

Multiple Choice

ABC Catering received $800 cash from a customer for catering services to be provided next month. Given the choices below, determine the general journal entry that ABC Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 800 & \\
• \hline \text { Unearned Catering Revenue } & & 800 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 800 & \\
• \hline \text { Catering Revenue } & & 800 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 800 & \\
• \hline \text { Accounts Receivable } & & 800 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Unearned Catering Revenue } & 800 & \\
• \hline \text { Catering Revenue } & & 800 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 800 & \\
• \hline \text { Catering Revenue } & & 800 \\
• \hline
• \end{array}\]

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Definitions:

Peg-Word System

A mnemonic technique for memorizing lists by associating items with a pre-memorized list of words or numbers.

Visually Associating

The process of forming connections or associations between visual images to facilitate remembering or understanding.

Mental Images

are representations in a person's mind of the physical world outside of that person, which can include visual, auditory, or other sensory experiences.

Imagery

Mental pictures; a powerful aid to effortful processing, especially when combined with encoding.