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GarryVolchara [31]
3 years ago
11

Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. T

he related adjusting entry would include a debit to: A. Accounts Receivable and a credit to Service Revenue. B. Unearned Revenue and a credit to Service Revenue. C. Cash and a credit to Service Revenue. D. Cash and a credit to Unearned Revenue.
Business
1 answer:
Nitella [24]3 years ago
7 0

Answer:

B. Unearned Revenue and a credit to Service Revenue.

Explanation:

The adjusting entry is given below:

Unearned revenue $1,000

         To Service revenue $1,000

(Being service revenue is recorded)

Here unearned revenue is debited as it decreased the liabilities and credited the service revenue as it increased the revenue

Therefore the option b is correct

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c. companies that have already developed products for their domestic middle markets and are now seeking to parlay their existing capabilities to serve the external global middle class.

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In this case, the checks that were written at the end of December will probably be cashed during the next months, but the company must adjust their bank balance because they know that the checks will eventually be cashed, sooner or later.

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