Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 29 - No. 35)
If a company records unearned revenue, what is the corresponding journal entry?
Debit Cash, Credit Unearned Revenue
Debit Unearned Revenue, Credit Cash
Debit Cash, Credit Revenue
Debit Revenue, Credit Cash
Explanation
When unearned revenue is received, the journal entry is Debit Cash and Credit Unearned Revenue (a liability).
Comments (0)
