Transactions and T Accounts The following selected transactions were completed during August of the current year: Billed customers for fees earned, $73,900

Transactions and T Accounts

The following selected transactions were completed during August of the current year:

1. Billed customers for fees earned, $73,900.
2. Purchased supplies on account, $1,960.
3. Received cash from customers on account, $62,770.
4. Paid creditors on account, $820.

a) Journalize these transactions in a two-column journal. If an amount box does not require an entry, leave it blank.

b)  Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the accounts, select the appropriate number to identify the transactions.

c) Assume that the unadjusted trial balance on August 31 shows a credit balance for Accounts Receivable. Does this credit balance mean that an error has occurred?