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.

Question

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.

Quizplus · Accepted Answer

This adjusting journal entry is recording fees earned at the end of the month, which means the company has performed services or delivered goods for which it has not yet been paid. Therefore, option B, recording fees earned at the end of the month, is the best explanation for this entry.

The Following Adjusting Journal Entry Does Not Include an Explanation