the houston mavericks basketball team receives $8,000 for season tickets on august 1. by december 31, $4,800…

the houston mavericks basketball team receives $8,000 for season tickets on august 1. by december 31, $4,800 of the revenue has been earned. the adjusting entry to be made on december 31 includes a:\n\no a. credit to unearned revenue of $4,800.\no b. credit to prepaid revenue of $3,200.\no c. debit to unearned revenue of $4,800.\no d. debit to ticket revenue of $4,800.

the houston mavericks basketball team receives $8,000 for season tickets on august 1. by december 31, $4,800 of the revenue has been earned. the adjusting entry to be made on december 31 includes a:\n\no a. credit to unearned revenue of $4,800.\no b. credit to prepaid revenue of $3,200.\no c. debit to unearned revenue of $4,800.\no d. debit to ticket revenue of $4,800.

Answer

Brief Explanations:

When the team received $8,000 on August 1, it was recorded as unearned revenue (a liability). As of December 31, $4,800 of the revenue has been earned. To recognize the earned revenue, we need to decrease the unearned revenue (debit) and increase the ticket revenue (credit).

Answer:

C. debit to Unearned Revenue of $4,800.