On April 1, 2017, Planet Services received $8,000 in advance of performing the services from a customer for three months of service — April, May and June. What would be the journal entry to adjust the accounts at the end of May?
A) Debit Service Revenue $2,667, and credit Unearned Revenue $2,667.
B) Debit Unearned Revenue $5,333, and credit Service Revenue $5,333.
C) Debit Unearned Revenue $8,000, and credit Service Revenue $8,000.
D) Debit Service Revenue $5,333, and credit Accounts Receivable $5,333.
B .Unearned Revenue ($8,000 x 2/3 ) 5,333
Service Revenue 5,333
You might also like to view...
According to Employee Retirement Income Security Act (ERISA), employees whose contributions are vested meet the requirements to receive a pension at retirement age.
Answer the following statement true (T) or false (F)
How should a routine request begin?
A) With a clear statement of request B) With a buffer that builds up to the main request C) With a justification for the request D) With an attention-getting statement, fact or question E) With the phrase "thank you" or similar words of appreciation
Most workplace violence emanates from unhappy ______.
A. supervisors B. coworkers C. clients or customers D. subordinates
The Liberal Arts faculty failed to see the reason that every professor on campus would not make exactly the same amount of money, arguing that every person is of equal value
The business faculty relied on the laws of supply and demand and market forces to guide their wages and couldn't fathom why their counterparts could be such dunderheads. The source of conflict between these two groups is: A) Differentiation. B) Uncertainty. C) Reward systems. D) Structural.