On March 1, Jefferson Company collected a $750 deposit for services to be performed on March...

On March 1, Jefferson Company collected a $750 deposit for services to be performed on March 15. Jefferson completed the project on March 15, as agreed. What adjusting entry would Jefferson make on March 15, related to this transaction?

a.Debit Cash: $750, credit Revenue: $750

b.Debit Unearned Revenue: $750, credit Revenue: $750.

c. Debit Revenue: $750, credit Cash: $750.

d. Debit Revenue: $750, credit Unearned Revenue: $750.

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Ans :

Option B , Debit Unearned revenue $ 750

Credit revenue $ 750

this adjusting entry is required to recognize the revenue. earlier entry that would have been recorded is

Cash $ 750

unearned earned $ 750

This is advance money received for services to be rendered in future

ekkarill92 answered 1 year ago

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