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

Question

Quizplus · Accepted Answer

When a client pays an amount that was previously billed, the company records the receipt of cash and reduces the accounts receivable balance, reflecting that the client's debt has been paid.

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