At the end of December, the owner of an apartment complex realized that the December rent had not been collected from one of the tenants. December 31 was the end of the accounting year; therefore, the owner made the appropriate adjusting entry at that time. When the December rent was collected in January of the following year, the entry made by the apartment owner should include which of the following?
A) debit to Rent receivable.
B) credit to Rent receivable.
C) debit to Rent revenue collected in advance.
D) credit to Rent revenue.

Question

Quizplus · Accepted Answer

The adjusting entry at the end of December would have included a debit to Rent Receivable and a credit to Rent Revenue. When the rent is collected in January, the entry should include a credit to Rent Receivable to decrease the receivable account.

At the End of December, the Owner of an Apartment