Question

Trimble Graphic Design receives $2,250 from a client billed in a previous month for services provided. Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

Answer 1

Answer:

Dr   Cash/Bank $2,250

Cr   Account Receivable $2,250

Step-by-step explanation:

At the time the transaction was carried out, that is the previous month, the accounting entries was a debit to account receivable (client account) and a credit to sales account. which is as shown below:

Dr   Account Receivable $2,250

Cr   Sales  $2,250

Being sales on credit to a client.

The client account will have an outstanding debit balance of $2,250 until payment is made. once payment is made, the following entries will be made to ensure no outstanding balance in the client account.

Dr   Cash/Bank $2,250

Cr   Account Receivable $2,250.