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Financial Accounting

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Explain the Change in Unearned Revenue

FINACT-EH8SU1

The unadjusted trial balance shows \$560 credit in Unearned Revenue. The adjusted trial balance shows \$260 credit in Unearned Revenue. Explain the change in the balance.

A

\$300 was received from customers for work to be performed in the future.

B

\$300 of the amounts paid in advance were earned.

C

\$260 of the amounts paid in advance were earned.

D

\$260 was received from customers for work to be performed in the future.