1)Metro Event Planning Services collects fees from its customers in advance. On January 1, 2019, the balance of its unearned revenue account was $5,000 (credit. During January and February, the company collected $2,000 and $700 as advance fees, respectively. During the two-month period, it performed services of $4,500 related to the deferred revenue. What is the balance in unearned revenue at the end of February?

A)Debit balance of $5,000

B)Credit balance of $5,000

C)Debit balance of $3,200

D)Credit balance of $3,200

2)If a company is using accrual basis accounting, when should it record revenue?

A)When cash is received, even though services may be performed at a later date

B)When services are performed, even though cash may be received at a later date

C)Before services are performed

D)When cash is received, 30 days after the completion of the services