b. journalize dexter receiving $4,500 in advance and then earning $3,000 as service revenue. start by…
b. journalize dexter receiving $4,500 in advance and then earning $3,000 as service revenue. start by recording dexters cash collections in advance of services being performed. date accounts debit credit 2024
Answer
Explanation:
Step1: Record cash collection in advance
When Dexter receives $4,500 in advance, cash increases (debit) and unearned service revenue (a liability) increases (credit).
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Cash | $4,500 | |
| Unearned Service Revenue | $4,500 |
Step2: Record service revenue earned
When Dexter earns $3,000 of the previously unearned revenue, unearned service revenue decreases (debit) and service revenue increases (credit).
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Unearned Service Revenue | $3,000 | |
| Service Revenue | $3,000 |
Answer:
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| 2024 | Cash | $4,500 | |
| Unearned Service Revenue | $4,500 | ||
| 2024 | Unearned Service Revenue | $3,000 | |
| Service Revenue | $3,000 |