P Ltd Provides Management Services to Its Subsidiary Company S

Multiple Choice

P Ltd provides management services to its subsidiary company S Ltd for $100,000 per year.At the end of the current year S Ltd owes $20,000 of this fee.The entry required on consolidation is:

A) DR Management Fee Revenue $100,000 CR Management Fee Expense $100,000
B) DR Management Fee Revenue $100,000 CR Management Fee Expense $100,000
DR Accrued Fees Payable $20,000
CR Accrued Fees Receivable $20,000
C) DR Management Fees Revenue $80,000 CR Management Fees Expense $80,000
D) None of the above