An accountant sent an invoice to a customer,John Brown for $500 for preparing his tax return.The debit and credit entries are:

Question

Quizplus · Accepted Answer

Option A correctly records the debit entry to the debtor, John Brown, and credit entry to Fees income for providing accounting services. Option B records fees income as a debit entry, which is incorrect. Option C records cash as the debit entry, which is incorrect as no cash transaction is involved. Option D records cash as a debit and debtor as a credit, which is incorrect as the debtor, John Brown, owes money to the accountant.

An Accountant Sent an Invoice to a Customer,John Brown for $500