Which of the following entries records the collection of cash from cash customers?
A) Fees Earned, debit; Cash, credit
B) Fees Earned, debit; Accounts Receivable, credit
C) Cash, debit; Fees Earned, credit
D) Accounts Receivable, debit; Fees Earned, credit

Question

Quizplus · Accepted Answer

The collection of cash from cash customers means that there is no account receivable involved. Cash is debited to record the increase in cash balance, and Fees Earned is credited to record the revenue earned. Hence, the correct entry is Cash, debit; Fees Earned, credit.

Which of the Following Entries Records the Collection of Cash