On December 1, Orenthal Marketing Company received $5400 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:
A. a debit to Earned Fees for $3600.
B. a credit to Earned Fees for $3600.
C. a debit to Earned Fees for $5400.
D. a credit to Unearned Fees for $1800.
E. a debit to Unearned Fees for $2700.
Answer: E
You might also like to view...
How does the auditor's judgements about the risk of material misstatements affect the audit?
If assets are $300,000 and liabilities are $192,000, then equity equals:
A. $492,000. B. $792,000. C. $192,000. D. $108,000. E. $300,000.
Email polling is a popular primary research method, though it typically takes longer to conduct than other data collection methods
Indicate whether the statement is true or false
If a debt is not paid by the spouse to whom the court has distributed the debt, the third-party creditor may recover payment of the debt from the other spouse
Indicate whether the statement is true or false