Ted Catering received $800 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.
A.
| Unearned Catering Revenue | 800 | |
| Catering Revenue | 800 |
B.
| Cash | 800 | |
| Unearned Catering Revenue | 800 |
C.
| Cash | 800 | |
| Accounts Receivable | 800 |
D.
| Accounts Receivable | 800 | |
| Catering Revenue | 800 |
E.
| Cash | 800 | |
| Catering Revenue | 800 |
Answer: B
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