At the end of the month, the total of the amount column of the revenue journal is posted as a
A) debit to Accounts Receivable and a credit to Cash
B) debit to Accounts Receivable and a credit to Fees Earned
C) debit to Cash and a credit to Fees Earned
D) debit to Cash and a credit to Accounts Payable

Question

Quizplus · Accepted Answer

The revenue journal records all the transactions related to the revenue accounts, including fees earned and accounts receivable. At the end of the month, the total of the amount column in the revenue journal is posted as a debit to accounts receivable and a credit to fees earned, reflecting the increase in the accounts receivable balance and the recognition of revenue from the fees earned. Option A and Option C are not correct because they do not reflect the dual aspect of the transaction - increase in one account and decrease in another account. Option D is not correct because it refers to accounts payable, which is not relevant to the revenue journal.

At the End of the Month, the Total of the Amount