question 30\ncincinnati supply, co. is a local supplier to the kraft heinz company, which is the third…

question 30\ncincinnati supply, co. is a local supplier to the kraft heinz company, which is the third - largest food and beverage company in north america and the fifth - largest food and beverage company in the world. cincinnati supply, co. receives $1,500 from a client billed in a previous month for services provided. which of the following general journal entries will cincinnati supply co. make to record this transaction?\naccounts receivable 1,500\ncash 1,500\ncash 1,500\ndesign revenue 1,500\ncash 1,500\naccounts receivable 1,500

question 30\ncincinnati supply, co. is a local supplier to the kraft heinz company, which is the third - largest food and beverage company in north america and the fifth - largest food and beverage company in the world. cincinnati supply, co. receives $1,500 from a client billed in a previous month for services provided. which of the following general journal entries will cincinnati supply co. make to record this transaction?\naccounts receivable 1,500\ncash 1,500\ncash 1,500\ndesign revenue 1,500\ncash 1,500\naccounts receivable 1,500

Answer

Explanation:

Step1: Analyze the transaction

The company received cash for services billed previously. Accounts Receivable was increased when the services were provided and billed. Now that cash is received, Accounts Receivable should be decreased and Cash increased.

Step2: Determine the journal - entry accounts

Cash is an asset that increases with a debit, and Accounts Receivable is an asset that decreases with a credit.

Step3: Identify the correct entry

The correct journal entry is to debit Cash (increase it) and credit Accounts Receivable (decrease it) for the amount of $1,500.

Answer:

Cash 1,500 Accounts Receivable 1,500 (the third option)