A Business Maintains Subsidiary Accounts for Each of Its Customers

question 5

Multiple Choice

A business maintains subsidiary accounts for each of its customers.On May 15,the business provides services on account: $2400 to customer J.Anthony ; $4300 to customer A.Martin; and $1800 to customer S.Lee.Which journal entry is needed to record these transactions?

• A) \[\begin{array} { | l | l | r | r | }
• \hline \text { May 15 } & \text { Accounts Receivable } & 8500 & \\
• \hline & \text { Service Revenue } & & 8500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | r | r | }
• \hline \text { May 15 } & \text { Accounts Receivable - J. Anthony } & 2400 & \\
• \hline & \text { Accounts Receivable - A. Martin } & 4300 & \\
• \hline & \text { Accounts Receivable - S. Lee } & 1800 & \\
• \hline & \text { Service Revenue } & & 8500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | r | r | }
• \hline \text { May } 15 & \text { Service Revenue } & 8500 & \\
• \hline & \text { Accounts Receivable } & & 8500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | r | l | r | r | }
• \hline \text { May 15 } & \text { Accounts Receivable Control } & 8500 & \\
• \hline & \text { Sales Revenue } & & 8500 \\
• \hline & & & \\
• \hline \text { May 15 } & \text { Accounts Receivable - J. Anthony } & 2400 & \\
• \hline & \text { Accounts Receivable - A. Martin } & 4300 & \\
• \hline & \text { Accounts Receivable -S. Lee } & 1800 & \\
• \hline & \text { Accounts Receivable - Control } & & 8500 \\
• \hline
• \end{array}\]

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Definitions:

Cotter Pins

A fastener used to prevent a wheel or other part from sliding off the axle upon which it is riding.

Taper Pins

Cylindrical metal fasteners that have a slight cone shape, allowing them to securely fit into tapered holes for alignment purposes.

Clevis Pins

Clevis pins are a type of fastener commonly used in mechanical linkages, allowing for rotation or movement of the connected parts while maintaining alignment.

Quick Release Fasteners

Mechanisms designed to fasten components together securely while also allowing for rapid removal or disassembly without requiring tools.