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Mekhanik [1.2K]
3 years ago
14

GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in adv

ance. GreenLawn's general journal entry to record this transaction on May 1 will include a: a. Debit to Unearned Revenue for $60,000. b. Credit to Cash for $60,000. c. Credit to Unearned Revenue for $60,000. d. Debit to Accounts Receivable for $60,000. e. Credit to Accounts Receivable for $60,000.
Business
1 answer:
Salsk061 [2.6K]3 years ago
7 0

Answer:

c. Credit to Unearned Revenue for $60,000

Explanation:

Based on the information given in a situation where the company provides landscaping services to clients in which On May 1 we were told a customer paid the company the amount of $60,000 in advance which means that the general journal entry to record this transaction on May 1 will include :Credit to Unearned Revenue for $60,000

Dr Cash $60,000

Cr Unearned revenue $60,000

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