Accrued fees earned are recorded during the adjusting process. The reversing entry will leave a debit balance in Fees Earned as of the first day of the next period.

Question

Quizplus · Accepted Answer

Accrued fees earned are recorded as an asset on the balance sheet, and the reversing entry will leave a debit balance in Fees Earned as of the first day of the next period. This is because the fees have been earned but not yet received in cash.

Accrued Fees Earned Are Recorded During the Adjusting Process