Homework Answers
Your required answer is optioin A i.e. Debit Unearned Service Revenue and Credit Service Revenue.
Explanation:
Since in the above case Cash is received in advance therefore at that time following journal entry has been Passed:
Cash ....................................................Dr.
Unearned Service Revenue ............Cr.
Therefore when service are performed then to record Service Revenue following journal entry will be passed:
Unearned Service Revenue ............Dr.
Service Revenue...........................Cr.
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