Receiving a bill or otherwise being notified that an amount is owed is notrecorded until the amount is paid.
a. True
b. False
Indicate whether the statement is true or false
Question 2
A municipality's Central Garage Internal Service Fund had total billings for 8,000 for the month. Of the 40 vehicles serviced, 20 were police vehicles, 10 were water department vehicles, and 10 were wastewater department vehicles.
What would the journal entry be to account for this transaction?
dr cr
a. Accounts Receivable 8,000 Transfer from Other Funds 8,000
b. Accounts Receivable 8,000 Charges for Services Revenue 8,000
c. Due from General Fund 4,000 Due from Water Fund 2,000 Due from Wastewater Fund 2,000 Charges for Services Revenue 8,000
d. Due from General Fund 4,000
Due from Water Fund 2,000
Due from Wastewater Fund 2,000
Transfer from Other Funds 8,000
e. None of the above.
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