BNL completed a performance and collected revenue of $10,000 not previously billed or recorded. The journal entry to record the collection would be
A) Accounts Receivable 10,000
Performance Fees 10,000
B) Cash 10,000
Performance Fees 10,000
C) Accounts Receivable 10,000
Cash 10,000
D) Performance Fees 10,000
Cash 10,000

Question

BNL completed a performance and collected revenue of $10,000 not previously billed or recorded. The journal entry to record the collection would be
A) Accounts Receivable   10,000 
Performance Fees   10,000
B) Cash   10,000 
Performance Fees   10,000
C) Accounts Receivable   10,000 
Cash   10,000
D) Performance Fees   10,000 
Cash   10,000

Quizplus · Accepted Answer

The correct journal entry to record the collection of revenue not previously billed or recorded involves increasing Cash (an asset) by $10,000 and increasing Performance Fees (revenue) by $10,000. This reflects the receipt of cash and the recognition of earned revenue.

BNL Completed a Performance and Collected Revenue of $10,000 Not