Question

question 16
1 pts
the cincinnati law institute collected $3,600 on account for work performed in the previous month. the client was billed and the revenue was reported in the previous month. cincinnati law institute will make which of the below journal entries to record this transaction?
debit legal fees revenue, $3,600; credit accounts receivable, $3,600.
debit cash, $3,600; credit accounts payable, $3,600.
debit accounts receivable, $3,600; credit cash, $3,600.
debit cash, $3,600; credit accounts receivable, $3,600.
question 17
1 pts
the cincinnati law institute completed a case and immediately collected $2,100 for the work performed. cincinnati law institute will make which of the below journal entries to record this transaction?
debit cash, $2,100; credit accounts payable, $2,100.
debit accounts receivable, $2,100; credit legal fees revenue, $2,100.
debit cash, $2,100; credit legal fees revenue, $2,100.
debit legal fees revenue, $2,100; credit accounts receivable, $2,100.

Explanation:

Question 16:

When the institute collects on account for work previously billed and revenue - recognized, cash increases (debit cash) and accounts receivable decreases (credit accounts receivable).

Question 17:

When the institute completes a case and immediately collects cash, cash increases (debit cash) and legal fees revenue is recognized (credit legal fees revenue).

Answer:

Question 16:

Debit Cash, $3,600; credit Accounts Receivable, $3,600.

Question 17:

Debit Cash, $2,100; credit Legal Fees Revenue, $2,100.