On December 1, Simpson Marketing Company received $8,400 from a customer for a 2-month 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:

Multiple Choice

a) A debit to Earned Fees for $8,400.

b) A debit to Unearned Fees for $4,200.

c) A credit to Unearned Fees for $2,800.

d) A debit to Earned Fees for $5,600.

e) A credit to Earned Fees for $5,600.

Answer rating: 100% (QA)

b A debit to Unearned Fees for 4200 Explanation On Dec 1 when 8400 was received the accounting wa... View the full answer