A law firm collected $1,800 for work to be performed in the following month.Which of the following general journal entries will the firm make to record this transaction?
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.

Question

Quizplus · Accepted Answer

The law firm collected cash, so the entry will be a debit to Cash and a credit to Unearned Legal Fees Revenue to record the liability for work to be performed in the future. This option is the only one that reflects this transaction accurately.

A Law Firm Collected $1,800 for Work to Be Performed