Question

russell company collected cash of $780 immediately after providing consulting services to a client. which of the following general journal entries will russell company make to record this transaction? multiple choice

Explanation:

When a company provides services and receives cash immediately, the asset account "Cash" increases (so we debit Cash) and the revenue account "Consulting Revenue" increases (so we credit Consulting Revenue). The first option is incorrect as it deals with Accounts Receivable (used when cash is not received immediately) and incorrectly debits Accounts Receivable and credits Cash. The third option is incorrect as it involves Accounts Receivable which is not relevant here since cash was received right away.

Answer:

The correct option is the one with "Cash" debited for $780 and "Consulting Revenue" credited for $780 (the second option in the provided choices).