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Pie
3 years ago
14

An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $4

00 has been earned. What is the correct adjusting entry that should be include?
Business
2 answers:
Mrrafil [7]3 years ago
5 0

Answer:

Debit unearned revenues for $400

Explanation:

Adjusting entries are journal entries made to record revenues and expenses accounts. These entries are made at the end of an accounting cycle.

Payment received for services on December 1 that was recorded as a liability = $1,000

Amount earned by the end of the year = $400

Therefore,

adjusting entry: Debit unearned revenues for $400 so that expenses matched to the accounting period in which the revenue paying for them is earned.

serious [3.7K]3 years ago
3 0

Answer:

The answer is "$400"

Explanation:

Given:

advance payment = $ 1,000

by the end of year he earned= $ 400

So, the total eared value is $ 400 because it is the Debit unearned income.

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Read 2 more answers
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Answer:

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