HH Consulting & Design provided $800 of consulting work and $100 of design work

Question

HH Consulting & Design provided $800 of consulting work and $100 of design work to the same client. It billed the client for the total amount and is expecting to collect from the customer next month. Which of the following general journal entries will HH Consulting & Design make to record this transaction?

Question 26 options:

Design Revenue 100 Consulting Revenue 800     Accounts Receivable 900 Accounts Payable 800     Design Revenue 100     Consulting Revenue 800 Cash 900    Consulting Revenue 800    Design Revenue 100 Cash 900     Consulting Revenue 800     Design Revenue 100 Accounts Receivable 900     Consulting Revenue 800     Design Revenue 100

Explanation / Answer

As the revenues will be collected in the next month, they are booked as accounts receivable.

Accounts Receivable $900     Consulting Revenue $800     Design Revenue $100

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