Question

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided. What would be the journal entry used to record Trimble this transaction?

Answer 1

The journal entry to record the transaction of Trimble Graphic Design receiving $1,500 from a client would be a debit to Accounts Receivable and a credit to Revenue.

Step-by-step explanation:

The journal entry to record this transaction would be:

Debit

• Accounts Receivable - $1,500

Credit

• Revenue - $1,500

This journal entry reflects an increase in the Accounts Receivable account and an increase in Revenue. By debiting Accounts Receivable, we are acknowledging that Trimble Graphic Design has received $1,500 from a client. By crediting Revenue, we are recognizing the revenue earned from the services provided to the client.