When utility customers are billed during the year, the enterprise fund journal entry will include:
A) A debit to Sales of Water.
B) A debit to Cash - Restricted.
C) A debit to Customer Accounts Receivable.
D) A debit to Billings to Customers.

Question

Quizplus · Accepted Answer

When utility customers are billed, the enterprise fund recognizes the amount billed as receivable, hence a debit to Customer Accounts Receivable is recorded. This reflects the claim against customers for services provided.

When Utility Customers Are Billed During the Year, the Enterprise