Asked by
Thareni Arumugam
on Oct 16, 2024
Verified
A law firm collected $1,800 on account for work performed in the previous month.Which of the following general journal entries will the firm make to record this collection of cash?
A) Debit Accounts Receivable,$1,800; credit Unearned Legal Fees Revenue,$1,800.
B) Debit Cash,$1,800; credit Unearned Legal Fees Revenue,$1,800.
C) Debit Legal Fees Revenue,$1,800; credit Accounts Receivable,$1,800.
D) Debit Accounts Receivable,$1,800; credit Legal Fees Revenue,$1,800.
E) Debit Cash,$1,800; credit Accounts Receivable,$1,800.
Legal Fees Revenue
Income derived from fees charged for legal services provided.
General Journal
The general journal is a primary accounting record used to enter all transactions through debits and credits, serving as the initial point of data entry.
Accounts Receivable
Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.
- Employ the guidelines of debit and credit to ensure accurate transaction documentation.
- Master the process of recording financial activities related to cash, receivables, payables, and equity.
Verified Answer
VD
Learning Objectives
- Employ the guidelines of debit and credit to ensure accurate transaction documentation.
- Master the process of recording financial activities related to cash, receivables, payables, and equity.