An accountant sent an invoice to a customer,Matt Bridges,for $300 for preparing his business activity statement.The debit and credit entries are:

Question

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The accountant has provided a service to Matt Bridges, so it is appropriate to debit the debtor account (M. Bridges) for $300, as he still owes that amount. The corresponding credit entry would be fees income for $300, as it is revenue earned by providing services. Option A is incorrect since there is no payment received and cash is not affected. Option B is incorrect because it shows a debit to cash for an amount greater than the fee charged, which does not match with the situation. Option D is incorrect because it shows a credit to fees payable, which does not match the scenario as there is no liability or obligation to be paid to anyone.

An Accountant Sent an Invoice to a Customer,Matt Bridges,for $300