The City of Jennings operates a central motor pool as an internal service fund for the benefit of the city's other funds and departments.In the current year,this fund billed the Community Services Department $30,000 for vehicle rentals.What account should the internal service fund use to record these billings?

Question

Quizplus · Accepted Answer

The internal service fund should use the account "Billings to Departments" to record the $30,000 in billings to the Community Services Department. This account is commonly used by internal service funds to track and record the charges for services provided to other departments or funds within the same government entity. The other options are not appropriate as "Interfund Transfers In" and "Interfund Exchanges" are used for different types of transactions between different funds, and "Cost of Providing Rentals to Other Funds and Units" is not an account typically used by internal service funds.

The City of Jennings Operates a Central Motor Pool as an Internal