B. Flat, CPA, collected fees of $650 not previously billed or recorded. The journal entry to record the collection would include
A) debit Cash, $650; credit Accounting Fees, $650.
B) debit Accounts Receivable, $650; credit Accounting Fees, $650.
C) debit Accounting Fees, $650; credit Accounting Fees, $650.
D) debit Cash, $650, credit Accounts Receivable, $650.

Question

Quizplus · Accepted Answer

Since B. Flat, CPA, has already performed the accounting services and the fees have not been previously billed or recorded, the collection of the fees results in a debit to Cash and a credit to Accounting Fees. Option A correctly reflects this transaction. Option B would be appropriate if the fees had been previously billed but not collected. Option C is not correct as it would not result in any change to the accounting records. Option D is not appropriate since there is no longer an Accounts Receivable outstanding after the collection is made.

B Flat, CPA, Collected Fees of $650 Not Previously Billed