Asked by
Melissa Chapman
on Nov 12, 2024
Verified
A company realizes that the last two days' revenue for the month was billed but not recorded. The adjusting entry on December 31 is a debit to Accounts Receivable and a credit to Fees Earned.
Accounts Receivable
Money owed to a company by its customers for goods or services delivered or used but not yet paid for.
Fees Earned
Income generated from services provided, recognized in the period in which the services are rendered.
Billed
Issuing an invoice to customers for goods sold or services provided, indicating the amount they owe the business.
- Comprehend the fundamentals of accrual basis accounting.
- Elucidate the impact of adjusting entries on the accounts presented in financial statements.
Verified Answer
JG
Learning Objectives
- Comprehend the fundamentals of accrual basis accounting.
- Elucidate the impact of adjusting entries on the accounts presented in financial statements.
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