What journal entry would be recorded if a company received a $12,000 payment from a customer...

What journal entry would be recorded if a company received a $12,000 payment from a customer for maintenance services to be provided over the next two months:

Debit Cash, credit Unearned Revenue	Debit Unearned Revenue, credit Cash.
Debit Unearned Revenue, credit Sales	Debit Cash, credit Revenue Payable.
Debit Sales, credit Unearned Sales

Solutions

Expert Solution

Cash received for services that to be provided in the future (next 2 months) = $12,000

Journal entry for advance received to provide services

Cash account................Debit $12,000

To Unearned Revenue account.....Credit $12,000

So, correct answer is Debit Cash and Credit Unearned Revenue

ekkarill92 answered 1 year ago

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