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Johnson Lighting sold a light fixture (cost of $400) for $600 to a customer. The customer paid cash. The sales price included a one-year
Johnson Lighting sold a light fixture (cost of $400) for $600 to a customer. The customer paid cash. The sales price included a one-year service contract valued at $60. The journal entry to recognize two months of revenue from the service contract would be: OA. debit to Unearned Revenue for $10; credit to Service Revenue for $10. OB. debit to Service Revenue for $60; credit to Unearned Revenue for $60. OC. debit to Service Revenue for $10; credit to Unearned Revenue for $10. OD. debit to Unearned Revenue for $60; credit to Service Revenue for $60.
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