Answer to Question #241805 in Accounting for Dian

Question

an amount of $25000 was ommitted from the books for fees however $15000 was collected in cash and recoreded how is the journal entr recorded

Answer 1

Solution:

First, record the initial journal entry that was omitted from the books for fees revenue

Dr. Accounts Receivable A/c                          25,000

                       Cr. Service Revenue                                              25,000

(To record revenue fees earned on account)

 

Record a journal for cash collected:

Dr. Cash A/c                                                    15,000

                       Cr. Account Receivable A/c                                    15,000

(To record cash collected on account)

 

The books of accounts will now be in order and account receivable will show a balance of $10,000 that is pending.