Asked by Tristen Peterson on Jul 21, 2024
Verified
Which of the following entries records the collection of cash from cash customers?
A) Fees Earned, debit; Cash, credit
B) Fees Earned, debit; Accounts Receivable, credit
C) Cash, debit; Fees Earned, credit
D) Accounts Receivable, debit; Fees Earned, credit
Fees Earned
Revenue generated from professional services provided, often used in accounting for law firms, consulting businesses, and other service providers.
Cash
Money in the form of bills or coins, immediately available for transactions or expenditure.
Accounts Receivable
Accounts receivable from clients for merchandise or services supplied but payment not received.
- Apply debit and credit regulations to distinct financial events.
Verified Answer
DW
Deidrick WilliamsJul 27, 2024
Final Answer :
C
Explanation :
The collection of cash from cash customers means that there is no account receivable involved. Cash is debited to record the increase in cash balance, and Fees Earned is credited to record the revenue earned. Hence, the correct entry is Cash, debit; Fees Earned, credit.
Learning Objectives
- Apply debit and credit regulations to distinct financial events.
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