Question
An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400
An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been earned. Demonstrate what thecorrectadjusting entry should include by choosing the correct statement below.
Credit Unearned revenues for $400.
Debit Unearned revenues for $400.
Debit Unearned revenues for $600.
Debit Service revenue for $400.
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Financial Accounting An International Introduction
Authors: David Alexander, Christopher Nobes
3rd Edition
273709268, 273709267, 978-0273709268
