1. During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:

Question 7 options:

1. a credit to Revenue for $2,000

2. a credit to Unearned Revenue for $400

3. a debit to Cash for $2,000

4. a debit to Unearned Revenue for $400