Question

A law firm collected $3,600 for work to be performed in the following month. Which of the following general journal entries will the firm make to record this transaction?

a. Debit Accounts Receivable, $3,600; credit Unearned Legal Fees Revenue, $3,600.b. Debit Cash, $3,600; credit Unearned Legal Fees Revenue, $3,600.c. Debit Legal Fees Revenue, $3,600; credit Accounts Receivable, $3,600.d. Debit Accounts Receivable, $3,600; credit Legal Fees Revenue, $3,600.e. Debit Cash, $3,600; credit Accounts Receivable, $3,600.

Answer 1

b. Debit Cash, $3,600; credit Unearned Legal Fees Revenue, $3,600

Step-by-step explanation:

The journal entry to record the given transaction is as follows

Cash Dr $3,600

To Unearned legal fees revenue $3,600

(Being the collection is recorded)

Since the collection is made so we debited the cash account and credited the unearned legal fees revenue so that the correct posting could be made

Hence, the correct option is b.