The general fund of Richmond was billed $22,000 on August 15,20X8,for using the services of one of its internal service funds (ISF).What accounts should be debited and credited,respectively,in the general fund on August 15,20X8,to record this transaction?

Question

Quizplus · Accepted Answer

When the general fund is billed by an internal service fund for services, the appropriate entry is to debit Expenditures for the cost of the services received and to credit Due to ISF for the amount owed to the internal service fund. This reflects the expense incurred by the general fund and the payable created to the internal service fund.

The General Fund of Richmond Was Billed $22,000 on August