The Following Adjusting Journal Entry Does Not Include an Explanation

question 56

Multiple Choice

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

• A)Record payment of fees earned.
• B)Record fees earned at the end of the month.
• C)Record fees that have not been earned at the end of the month.
• D)Record payment of fees to be earned.

---

Definitions:

NSF Check

An NSF check is a check that cannot be processed due to insufficient funds in the account it's drawn on.

Personal Deposit

Funds that an individual places in a bank account for safekeeping, which can earn interest over time depending on the type of account.

Debit Memorandum

A document issued by a buyer to a seller indicating a reduction in the amount owed, typically due to returned goods or an overcharge.

Credit Memorandum

A document issued by a seller to a buyer, reducing the amount the buyer owes the seller under the terms of an earlier invoice.