Answer:
Explanation:
debit Unearned Revenue 200
credit Revenues 200
To realize one month of insurance premium revenue
Answer:
Modified Rebuy
Explanation:
Modified rebuying is the process whereby an individual or an organization makes a purchase that have been previously purchased but this times makes changes to some elements different from the previous purchase like change of suppliers, terms, price and so on. In this case, the buyer reviews the buying situation. Here, the buyer is interested in modifying the specifications of goods previously purchased.
Answer:
$900 is the correct answer
Explanation:
The reason is that according to the accrual basis the earnings must be realized when they are earned. In the question it is clearly stated that the earnings per month are $900 ($5400/6months). As services for the five months are delivered and the remainder left is of only one month. So the earnings that will be realized in the accounting books will be:
Dr Unearned Revenue $4500
Cr Revenue Earned $4500
Furthermore, the amount left in the unearned revenue account will be $900 ($5400-$4500).
The answer should be threshold for health benefits.
