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Two Sisters Operate a Bed and Breakfast on the Coast

Question 124

Multiple Choice

Two sisters operate a bed and breakfast on the coast of Maine.As customers make reservations they are required to pay cash in advance equal to one-half of the rate for their stay.How should the sisters account for the cash received as reservations are made?


A) Cash
    Unearned Service Revenue
B) Cash
   Service Revenue
C) Unearned Service Revenue
   Service Revenue
D) Cash  
   Sales Revenue

Correct Answer:

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