Question
Sanborn Company rents space to a tenant for $3,400 per month. The tenant currently owes rent for November and December. The tenant has agreed to
Sanborn Company rents space to a tenant for $3,400 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. Assuming adjustments are only made at year-end, the adjusting entry needed on December 31 is:
Multiple Choice
Debit Rent Receivable, $10,200; credit Rent Earned, $10,200.
Debit Unearned Rent, $6,800; credit Rent Earned, $6,800.
Debit Unearned Rent, $3,400; credit Rent Earned, $3,400.
Debit Rent Receivable, $6,800; credit Rent Earned, $6,800.
Debit Rent Receivable, $3,400; credit Rent Earned, $3,400.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
