Choice "B" is correct. The $150,000 billing to the parks and recreation fund would be credited to operating revenues control in the internal revenue service fund. The journal entry would be:
| Debit (Dr) | Credit (Cr) |
|---|
| Due from other funds | $ 150,000 | |
| Operating revenues control | | $ 150,000 |
Choice "c" is incorrect. The $150,000 would not be accounted for as a reimbursement that reduces data processing department expenses.Choice "a" is incorrect. The $150,000 is not an intergovernmental transfer, but is an intragovernmental charge for benefits received by the Park and Recreation unit. That charge is accounted for as revenue.Choice "d" is incorrect. Providing services to other departments or funds is recorded as revenue by the internal service fund. Interfund Exchanges is not an appropriate account title.
