The cash receipt was recorded as unearned fees

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Reference no: EM131264881

On December 1, Simpson Marketing Company received $2,700 from a customer for a marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:

a debit to Earned Fees for $2,700.

a debit to Unearned Fees for $1,350.

a credit to Unearned Fees for $900.

a credit Earned Fees for $1,800.

a debit to Earned Fees for $1,800.

Reference no: EM131264881

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