A city's police department receives goods from an Internal Service Fund for which it has not yet paid the ISF. To record this transaction the city should record a credit to what account in the General Fund?

Question

Quizplus · Accepted Answer

The city should record a credit to "Due to the Internal Service Fund" in the General Fund to reflect the liability for goods received but not yet paid for.

A City's Police Department Receives Goods from an Internal Service