A roofing company collects fees when jobs are complete. The work for one customer, whose job was bid at $3,000, has been completed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end, what is the adjusting entry the company would need to make on December 31, the calendar year-end?
A. Debit Accounts Receivable, $3,000; credit Roofing Fees Revenue, $3,000.
B. Debit Cash, $3,000; credit Roofing Fees Revenue, $3,000.
C. Debit Roofing Fees Revenue, $3,000; credit Accounts Receivable, $3,000.
D. Debit Cash, $3,000; credit Accounts Receivable, $3,000.
E. No adjustment is required.
Answer: A
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