Cash receipt recorded as unearned fees


On May 1, 2007 Giltus Advertising Company received $1500 from Julie Bee for advertising services to be completed April 30, 2008. The cash receipt was recorded as unearned fees and at December 31, 2007, $1000 of the fees had been earned. The adjusting entry on December 21 year 1 should include:

A. A debit to uearned fees for $500

B. A credit to unearned fees for $500

C. A credit to earned fees for $1000

D. A debit to earned fees for $1000

E. A debit to earned fees for $500

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Accounting Basics: Cash receipt recorded as unearned fees
Reference No:- TGS063901

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