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MakcuM [25]
3 years ago
10

Payments from customers received before performing services for the customers are recorded as

Business
1 answer:
Pachacha [2.7K]3 years ago
7 0

Answer:

B) liabilities.

Explanation:

When the payment is received from the customer before performing the services is known as unearned service revenue

The journal entry is

Cash A/c Dr XXXXX

          To Unearned Service revenue A/c XXXXX

(Being advance payment is received)

We simply debited the cash account as cash is received and credited the respective account i.e unearned service revenue

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