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    roryvic0523's Avatar
    roryvic0523 Posts: 3, Reputation: 1
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    #1

    Nov 19, 2010, 07:49 PM
    Earned but unrecorded fees being collected later
    In addition to the machinery rental fees included in the revenue account balance, the company has earned another $12,381 in unrecorded fees that will be collected on January 31, 2010.

    My adjusted trial balance shows unearned rental fees as 19,924 and rental fees earned as 75,480. Do I just add earned but unrecorded rental fees to the rental fees earned? And if I do this what is the offset? Thank you!
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Nov 19, 2010, 08:17 PM

    When you accrue for earned income, the debit is a receivable and the credit is an income account. So, yes, you can increase the Rental Fees Earned account.
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