Question: On December 31, 2010, Lester Co. prepared an adjusting entry for $6,700 of earned but unrecorded management fees. On January 16, 2011, Lester received $15,500 cash in management fees, which included the accrued fees earned in 2010. Assuming the company uses reversing entries, prepare the January 1, 2011, reversing entry and the January 16, 2011, cash receipt entry.