Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 48 - No. 16)
What is the proper accounting treatment for receiving cash in advance for services that have not yet been provided?
Debit Cash; Credit Service Revenue
Debit Unearned Revenue; Credit Cash
Debit Cash; Credit Unearned Revenue
Debit Service Revenue; Credit Cash
Explanation
Cash is debited and Unearned Revenue is credited as a liability.
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