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