At the end of the accounting period, the Service Fees Earned account has a normal balance of $76,000. The accountant makes two adjustments--one to accrue unbilled service fees of $6,000, and the other to reduce the Unearned Service Fees liability account by $900.
After the adjustments are posted, the Service Fees Earned account has a balance of:
A) $75,400
B) $82,900
C) $79,900
D) $72,100
E) None of the above

Question

Quizplus · Accepted Answer

The Service Fees Earned account increases by $6,000 due to the accrual of unbilled service fees, making it $82,000. The reduction of the Unearned Service Fees liability by $900 also increases the Service Fees Earned account, resulting in a new balance of $82,900.

At the End of the Accounting Period, the Service Fees