On December 31,2010,the manager of Jordan Creek Apartments noticed that four tenants had not paid their December rent amounting to $500 each.What is the adjusting entry required on December 31,2010?

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The adjusting entry on December 31, 2010, would be to debit Rent Receivable (or Accounts Receivable) and credit Rent Revenue (or Rental Income) to recognize the revenue that has been earned but not yet received. The journal entry would be as follows:
Adjusting Entry on December 31, 2010:
Debit: Rent Receivable (or Accounts Receivable) $2,000
Credit: Rent Revenue (or Rental Income) $2,000
- Rent Receivable (or Accounts Receivable) is an asset account that increases on the debit side, reflecting the amount owed by the tenants.
- Rent Revenue (or Rental Income) is a revenue account that increases on the credit side, reflecting the earned income from the rent that is due.
This adjusting entry ensures that the revenue is recognized in the period it is earned, in accordance with the accrual basis of accounting, even though the cash has not yet been received.

On December 31,2010,the Manager of Jordan Creek Apartments Noticed That