?

Financial Accounting

Free Version

Upgrade subject to access all content

Easy

Adjusting Entries: Unearned Revenue Entry Shows What Activity?

FINACT-90ZSWI

One of the journal entries in your client's books included the following:

Journal entry: DEBIT CREDIT
Unearned Revenue \$45,000
Service Revenue \$45,000


What activity does this entry reflect?

A

Receipt of cash from customers.

B

Performing services for customers.

C

Write-off of an old uncollectible customer account.

D

Correction of an error in billing a customer.