Antonio's catered a reception.The total price was $500.The customer paid half of the fee in cash and placed the remainder on account.The journal entry to record this transaction is:
A) $$\begin{array} { | c | l | }
\hline \text { Cash } & 250 \
\hline \text { Accounts Receivable } & 250 \
\hline \text { Catering Service Fees } &250 \
\hline
\end{array}$$
B) $\begin{array}{|l|l|}
\hline\text { Cash } & 500 \
\hline \text { Accounts Receivable } &500\
\hline
\end{array}$
C) $\begin{array}{|l|l|}
\hline\text { Cash } & 500 \
\hline \text { Catering Service Fees } &500\
\hline
\end{array}$
D) $$\begin{array} { | r | r | }
\hline \text { Accounts Receivable } & 500 \
\hline \text { Cash } & 250 \
\hline \text { Catering Service Fees } & 250 \
\hline
\end{array}$$

Question

Antonio's catered a reception.The total price was $500.The customer paid half of the fee in cash and placed the remainder on account.The journal entry to record this transaction is:
A) $$\begin{array} { | c | l | } 
\hline \text { Cash } & 250 \
\hline \text { Accounts Receivable } & 250 \
\hline \text { Catering Service Fees } &250 \
\hline
\end{array}$$
B) $\begin{array}{|l|l|}
\hline\text { Cash } & 500 \
\hline \text { Accounts Receivable } &500\
\hline
\end{array}$ 
C) $\begin{array}{|l|l|}
\hline\text { Cash } & 500 \
\hline \text { Catering Service Fees } &500\ 
\hline
\end{array}$ 
D) $$\begin{array} { | r | r | } 
\hline \text { Accounts Receivable } & 500 \
\hline \text { Cash } & 250 \
\hline \text { Catering Service Fees } & 250 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct journal entry to record the transaction where half of the fee is paid in cash and the remainder is placed on account involves debiting Cash for $250 (the amount paid in cash), debiting Accounts Receivable for $250 (the amount placed on account), and crediting Catering Service Fees for $500 (the total revenue earned from the service). This accurately reflects the increase in cash, the increase in accounts receivable, and the increase in revenue.

Antonio's Catered a Reception B) Cash 500 Accounts Receivable 500\begin{array}{|l|l|}\hline\text { Cash } & 500 \\\hline \text { Accounts Receivable } &500\\\hline\end{array} Cash Accounts Receivable ​500500​​

Antonio's Catered a Reception B) $\begin{array}{|l|l|}\hline\text { Cash } & 500 \\\hline \text { Accounts Receivable } &500\\\hline\end{array}$