At the end of the current year, 12/31, $3,700 fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees.
Date |
Account Titles |
Debits |
Credits |
Ans: Accrued revenue is the asset for organisation, which appear in balance sheet at year end. And revenue earned is transferred to income statement for the year. When fees is billed to coustomer, we will transfer the accrue fees to acconts receivable account. Journal Entry for the same will be as follows:
Date |
Account Title |
Debit Amt in $ |
Credit Amt in $ |
31-Dec |
Accrued Fees |
3700 |
|
Fees Earned |
3700 |
||
31-Dec |
Fees Earned |
3700 |
|
Income Summary |
3700 |
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