Trimble Graphic Design Receives $1,500 from a Client Billed in a Previous

question 108

Multiple Choice

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided. Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Unearned Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | l | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Unearned Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Accounts Receivable } & & 1,500 \\
• \hline
• \end{array}\]

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Definitions:

Operation Manual

A detailed document that provides instructions on how to use a product or perform a task, typically outlining procedures, guidelines, and troubleshooting steps.

Peak Efficiency

The state of operating at maximum productivity with the least waste of resources.

Dollar-based Cost Drivers

Factors that cause a change in the cost of an activity, measured in monetary terms, such as labor hours, machine hours, or raw material quantities.

Cost Allocation Process

The method by which overhead or indirect costs are systematically assigned to various cost objects like products, services, or departments.