The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.
A) Record payment of fees earned
B) Record fees earned at the end of the month
C) Record fees that have not been earned at the end of the month
D) Record payment of fees to be earned.

Question

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. 
A) Record payment of fees earned 
B) Record fees earned at the end of the month 
C) Record fees that have not been earned at the end of the month 
D) Record payment of fees to be earned.

Quizplus · Accepted Answer

The entry is recording fees earned at the end of the month, indicating that the revenue has been earned during the period and needs to be recognized as such.

The Following Adjusting Journal Entry Does Not Include an Explanation