Which of the Following Entries Would Be Used to Record

question 32

Multiple Choice

Which of the following entries would be used to record the billing of fees earned?

• A)Debit Accounts Receivable and credit Rental Fees
• B)Credit Cash and credit Rental Fees
• C)Debit Accounts Payable and credit Rental Fees
• D)Debit Cash and debit Rental Fees

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Definitions:

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources (or other materials of equal value) at a later date.

Notes Receivable

Written promises for amounts to be received by a business, typically including interest, from individuals or other entities.

Bad Debt Expense

An expense reported on the income statement due to receivables that are not expected to be collected.

Recording Methods

Various approaches or systems used to document financial transactions in accounting books or software.