Choice "A" is correct. Billings for transportation services provided to other governmental units are considered quasi-external transactions and are treated as revenues by the internal service fund. The journal entry is as follows:
| Debit (Dr) | Credit (Cr) |
|---|
| Due from other funds | $ XXX | |
| Operating revenues | | $ XXX |
Choices "b", "c", and "d" are incorrect, per the journal entry explanation above.
