Final answer:
In an enterprise fund, when billing customers, a debit to Customer Accounts Receivable and a credit to Sales of Water are recorded in the journal entry to reflect the expectation of payment for services provided.
Step-by-step explanation:
When utility customers are billed during the year, the typical enterprise fund journal entry will include a debit to Customer Accounts Receivable. This represents the amount billed to customers that the enterprise expects to receive. Sales of Water would be credited to recognize the revenue associated with the service provided. An example of the journal entry would be:
Dr. Customer Accounts Receivable
Cr. Sales of Water
This entry reflects that the utility has provided services and has a claim to payment from its customers. The options mentioning Cash - Restricted or Billings to Customers are less common; Cash - Restricted is typically used for funds that have constraints on usage, while Billings to Customers is not a standard account name in accounting for the recognition of revenue or receivables.