After the appropriate adjusting entry is recorded,the balance in the liability account Unearned Fees will:
A)Decrease by $9,800.
B)Increase by $9,800.
C)Equal $9,800.
D)Be unaffected.

Question

Quizplus · Accepted Answer

The adjusting entry for unearned fees involves debiting the liability account Unearned Fees and crediting the revenue account Fees Earned for the amount of revenue earned during the period. Since the adjusting entry involves a debit to Unearned Fees, the balance in this account will decrease by $9,800.

After the Appropriate Adjusting Entry Is Recorded,the Balance in the Liability