Recording the above transactions would include which of the following?
A) Transaction #1 would include a debit to Revenue.
B) Transaction #3 would include a credit to Cash.
C) Transaction #4 would include a debit to Accounts receivable.
D) Transaction #6 would include a debit to Unearned Revenue.

Question

Quizplus · Accepted Answer

Transaction #4 involves the sale of merchandise on account, which increases accounts receivable and requires a debit entry to record the sale.

Answer: D
 Transaction #6 involves receiving payment for services not yet rendered, which creates unearned revenue and requires a debit entry to record the receipt of payment.

Option A is incorrect because Transaction #1 involves the purchase of inventory, not the sale of goods, so it does not affect revenue.

Option B is incorrect because Transaction #3 involves the purchase of supplies on account, not the exchange of cash, so it does not require a credit to cash.

Recording the Above Transactions Would Include Which of the Following