Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 21)
What is the journal entry for unearned revenue?
Debit Cash, Credit Service Revenue
Debit Service Revenue, Credit Cash
Debit Cash, Credit Unearned Revenue
Debit Unearned Revenue, Credit Cash
Explanation
Cash is increased (debit) and unearned revenue (a liability) is increased (credit) upon receiving payment before providing the service.
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