The general journal entry to record the earning of revenue would most commonly include:
A) a debit to Accounts Receivable and a credit to Capital.
B) a debit to Cash and a credit to Capital.
C) a debit to Fees Earned and a credit to Cash.
D) a debit to Accounts Receivable and a credit to Fees Earned.

Question

Quizplus · Accepted Answer

The correct journal entry for recording the earning of revenue on account (not yet received in cash) involves debiting Accounts Receivable (to record the amount owed by the customer) and crediting Fees Earned (or a similar revenue account) to recognize the revenue earned. This reflects the increase in assets (Accounts Receivable) and the increase in owner's equity (through revenue).

The General Journal Entry to Record the Earning of Revenue