When a supplies internal service fund records a billing to the General Fund, the journal entry in the internal service fund will include:
A) A debit to Due from General Fund.
B) A debit to Due to General Fund.
C) A debit to Billings to Department.
D) A debit to Inventory of Supplies.

Question

Quizplus · Accepted Answer

A debit to Due from General Fund is correct because it increases the receivable from the General Fund, indicating that the General Fund owes money to the internal service fund for the services provided.

When a Supplies Internal Service Fund Records a Billing to the General