Billed Customers For Fees Earned Journal Entry

Fees Earned And Billed To Customers For The Month Journal Entry / When The Company Sends An Invoice Requesting The Buyer To Send Payment To Company For Services Rendered Or Performed

This question is related to Revenue Earned But Not Yet Collected / Received Or Accrued Revenue.

Billed means that the company or corporation sent an invoice to customers requesting them to make payment on time.

Accrual Basis of Accounting emphasizes that revenue should be recognized when earned so now the company earned the revenue for the period.

When the company or corporation earned fees for the goods or merchandise sold or services rendered / performed on account / credit, then the company billed to customers / clients (sending an invoice to customers requesting him to send payment to the company) for the month and recorded the following journal entry as shown below:

                                                          Accounts Receivable a/c  XXX

 

                                                                                                       Fees Earned a/c  XXX

 

                                                                            (Fees Earned For The Month)

The increase in Accounts Receivable Account / Sundry Debtor Account resulted in the debit to it while the increase in fees earned account is recorded as a credit.

Accounts Receivable On Balance Sheet And Fees Earned In Income Statement

Accounts receivable account is a Balance Sheet Account and recorded on balance sheet while fees earned is recorded in income statement as it is an Income Statement Account.