Question

Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each​ month, the company makes an adjusting entry to account for the tickets used during the month​ (ticket revenue.) On March​ 1, the Unearned Revenue account had a credit balance of​ $5,000. During​ March, Mercury sold 500 tickets at​ $40 each, and 450 tickets were used during the month. What is the balance in Unearned Revenue at the end of​ March?

Answer 1

Answer:I did the calculations and i believe i got it right.

Explanation:

Mercury sold 500 tickets at $40 a piece, okay, still with me, good. Yet, only 450 tickets were used during the month. What that mean is to minus 50 tickets. 50 multiplied by $40 is $2000. 500 multiplied by $40 equals to $20000. $20000 minus $2000 is equaled to $18000. They also had a Unearned Revenue account that had a credit balance of $5000. So, that means they should be in "debt." They should have $-15000. Add $2000, it is equaled to $-13000. So it should be $-13000. If wrong, i'm sorry.