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nadezda [96]
3 years ago
15

On December 1, Orenthal Marketing Company received $3,600 from a customer for a 2-month marketing plan to be completed January 3

1 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include Multiple Choice a.a debit to Unearned Fees for $1,800 b.a debit to Earned Fees for $1,800. c.a debit to Earned Fees for $3,600 d.a credt to Eamed Fees for $3,600
Business
1 answer:
Ilya [14]3 years ago
4 0

Answer:

a.a debit to Unearned Fees for $1,800

Explanation:

The adjusting entry is shown below:

Unearned fees A/c Dr $1,800

     To Earned fees A/c $1,800

(Being the unearned fees is recorded)

The computation is shown below:

= Received amount × number of months  ÷ given months

= $3,600 × 1 months ÷ 2 months

= $1,800

We simply debited the unearned fees and credited the earned fees account for $1,800

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