Question
On June 21, Billington Company received a $500 check from David Lamphear for services to be performed in the future. The bookkeeper for Billington Company
On June 21, Billington Company received a $500 check from David Lamphear for services to be performed in the future. The bookkeeper for Billington Company incorrectly debited Cash for $500 and credited Accounts Receivable for $500. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should
| A. | debit Accounts Receivable $500 and credit Service Revenue $500. | |
| B. | debit Cash $500 and credit Unearned Service Revenue $500. | |
| C. | debit Accounts Receivable $500 and credit Cash $500. | |
| D. | debit Accounts Receivable $500 and credit Unearned Service Revenue $500. |
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