A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should
A) make no entry until the cash is received
B) Cash, debit; Accounts Receivable, credit
C) Cash, debit; Fees Earned, credit
D) Accounts Receivable, debit; Fees Earned, credit

Question

Quizplus · Accepted Answer

When a patient requests that the bill be mailed rather than paying at the time of service, the amount owed becomes an accounts receivable, which is an asset. Therefore, the bookkeeper should debit accounts receivable and credit fees earned to record the transaction. Option A is incorrect because an entry should be made immediately, as soon as the service is provided. Option B is incorrect because cash is not received at the time of service, so no cash entry should be made. Option C is incorrect because fees earned is not affected by the request to mail the bill; it is affected by the service provided.

A Patient Has a Physical Examination and Asks the Bookkeeper