Question
Freedom Air collected $172,000 in February for charter flights booked for March and April and properly recorded the amount collected as Unearned Charter Revenue. The
Freedom Air collected $172,000 in February for charter flights booked for March and April and properly recorded the amount collected as Unearned Charter Revenue. The flights provided during March earned revenue of $89,700. The correct entry to record the revenue earned in March is: debit Unearned Charter Revenue $89,700; credit Accounts Receivable $89,700. debit Cash $89,700; credit Flight Revenue $89,700. debit Unearned Charter Revenue $172,000; credit Flight Revenue $172,000. debit Flight Revenue $82,300; credit Accounts Receivable 82,300. debit Unearned Charter Revenue $89,700; credit Flight Revenue $89,700.
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