Question
On December 1, Simpson Marketing Company received $3,600 from a customer for a 2-month marketing plan to be completed January 31 of the following year.
On December 1, Simpson Marketing Company received $3,600 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include:
a debit to Services Revenue for $3,600.
a debit to Unearned Revenue for $1,800.
a credit to Unearned Revenue for $1,800.
a debit to Services Revenue for $1,800.
a credit Services Revenue for $3,600.
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
3rd Canadian Edition
0470836792, 978-0470836798
