Accounting fees increase on the debit side?
Question
Accounting fees increase on the debit side?
Solution
Yes, accounting fees increase on the debit side. Here's a step-by-step explanation:
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In accounting, each transaction is recorded in two accounts: one account is debited (increased), and the other account is credited (decreased). This is known as double-entry bookkeeping.
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Accounting fees are considered an expense for the company. When a company incurs an expense, it increases the expense account by debiting it.
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So, when a company pays accounting fees, it will debit (increase) the "Accounting Fees Expense" account and credit (decrease) the "Cash" or "Accounts Payable" account.
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Therefore, accounting fees increase on the debit side of the ledger.
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A company factored $51,000 of its accounts receivable and was charged a 3% factoring fee. The journal entry to record this transaction would include a:Multiple ChoiceDebit to Cash of $51,000, a debit to Factoring Fee Expense of $1,530, and credit to Accounts Receivable of $49,470.Debit to Cash of $51,000 and a credit to Notes Payable of $51,000.Debit to Cash of $51,000 and a credit to Accounts Receivable of $51,000.Debit to Cash of $49,470, a debit to Factoring Fee Expense of $1,530, and a credit to Accounts Receivable of $51,000.Debit to Cash of $52,530 and a credit to Accounts Receivable of $52,530.
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