Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When Brewer Company pulled the April 2020 trial balance, the controller questioned the correctness of the following event even though the trial balance balanced:

image text in transcribed

When Brewer Company pulled the April 2020 trial balance, the controller questioned the correctness of the following event even though the trial balance balanced: $6,500 in services provided to customers in April for which customers had paid in advance was recorded as follows: DR: Accounts receivable $5,600, CR Unearned service revenue $5,600. What entry is needed in order to correct the transaction recorded? A. The entry was correct as recorded. No correcting entry is necessary. B. Dr. Cr. Unearned service revenue 6,500 Accounts receivable Service revenue 5,600 900 C. Dr. Cr. Unearned service revenue 6,500 Service revenue 6,500 D. Dr. Cr. Service revenue 6,500 Accounts receivable 900 Unearned service revenue 5,600 E Dr. Cr. Unearned service revenue 12,100 Accounts receivable Service revenue 5,600 6,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

12th edition

77862228, 978-1259283567, 1259283569, 978-0077862220

More Books

Students also viewed these Accounting questions