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

question 86

Multiple Choice

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

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

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Definitions:

ASME

The American Society of Mechanical Engineers, a professional association that sets standards for engineering practices, including those related to mechanical design.

American Society

A general term that could refer to various professional organizations in the United States, such as the American Society of Mechanical Engineers (ASME).

Drafting Standards

Established rules and conventions used in technical drawings and CAD designs to ensure clarity, accuracy, and uniformity.

ANSI

The American National Standards Institute, a private non-profit organization that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the United States.