On December 31, Nam Do San Property management made an adjusting entry to record P30,000 management fees earned but not yet billed to a client. This entry was reversed on January 1. On January 15, the client paid P120,000, of which P90,000 was applicable to the period January 1 through January 15. The journal entry made by Nam Do San to record receipt of the P120,000 on January 15 includes A. A credit to Management Fees Earned of P120,000 B. A credit to Accounts Receivable of P30,000 C. A debit to Management Fees Earned of P30,000 D. A credit to Management Fees Earned of P90,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, Nam Do San Property management made an adjusting entry to record P30,000
management fees earned but not yet billed to a client. This entry was reversed on January 1. On January
15, the client paid P120,000, of which P90,000 was applicable to the period January 1 through January
15. The journal entry made by Nam Do San to record receipt of the P120,000 on January 15 includes
A. A credit to Management Fees Earned of P120,000
B. A credit to Accounts Receivable of P30,000
C. A debit to Management Fees Earned of P30,000
D. A credit to Management Fees Earned of P90,000
Transcribed Image Text:On December 31, Nam Do San Property management made an adjusting entry to record P30,000 management fees earned but not yet billed to a client. This entry was reversed on January 1. On January 15, the client paid P120,000, of which P90,000 was applicable to the period January 1 through January 15. The journal entry made by Nam Do San to record receipt of the P120,000 on January 15 includes A. A credit to Management Fees Earned of P120,000 B. A credit to Accounts Receivable of P30,000 C. A debit to Management Fees Earned of P30,000 D. A credit to Management Fees Earned of P90,000
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