Use the following five transactions for Morton & Associates, Inc. to answer the questions.
May 1 Bills are sent to clients for services provided in April in the amount of $800.
9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220.
15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9.
23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June.
31 Salaries of $850 are paid to employees.
-See the transactions to Morton & Associates. The journal entry to record the May 1 transaction will include an increase of $800 to
A) Accounts Payable
B) Accounts Receivable
C) Cash
D) Prepaid Expenses

Question

Quizplus · Accepted Answer

The May 1 transaction involves billing clients for services provided, which increases Accounts Receivable by $800 as the company expects to receive this amount from clients.

Use the Following Five Transactions for Morton & Associates, Inc