agatha panthis landscape architect company earned $2,500 of revenue collecting $1000 immediately and will…

agatha panthis landscape architect company earned $2,500 of revenue collecting $1000 immediately and will collect the remaining amount in 30 days. the journal entry to record this transaction is: multiple choice debit fees income $2,500 and credit accounts receivable $2,500 debit cash $1000 and credit fees income $1000 debit fees income $2,500, credit cash $1000 and credit accounts receivable $1500 debit cash $1000, debit accounts receivable $1500 and credit fees income $2,500

agatha panthis landscape architect company earned $2,500 of revenue collecting $1000 immediately and will collect the remaining amount in 30 days. the journal entry to record this transaction is: multiple choice debit fees income $2,500 and credit accounts receivable $2,500 debit cash $1000 and credit fees income $1000 debit fees income $2,500, credit cash $1000 and credit accounts receivable $1500 debit cash $1000, debit accounts receivable $1500 and credit fees income $2,500

Answer

Brief Explanations:

When a company earns revenue, it credits the revenue account (Fees Income here). Since $1000 is received immediately, cash is debited for that amount. The remaining $2500 - $1000 = $1500 is to be received later, so Accounts Receivable is debited for $1500.

Answer:

debit Cash $1000, debit Accounts Receivable $1500 and credit Fees Income $2500