Unearned Ticket Revenue is $5,034 on the unadjusted trial balance.During the period,$3,309 of that money has now been earned.The adjusted balance for Unearned Ticket Revenue is a:
A)$3,309 debit.
B)$3,309 credit.
C)$1,725 debit.
D)$1,725 credit.

Question

Quizplus · Accepted Answer

Unearned Ticket Revenue is a liability account that represents the amount of cash received for tickets that have not yet been earned. The unadjusted trial balance shows a balance of $5,034 in this account, which means that $5,034 worth of tickets have been sold but not yet earned. During the period, $3,309 of that money has now been earned, leaving an unearned balance of $1,725 ($5,034 - $3,309 = $1,725). 
Since the earned portion of the revenue is credited to Unearned Ticket Revenue, the adjusted balance of the account should be a debit of $1,725 to reflect the amount that still needs to be earned. Therefore, the correct answer is D.

Unearned Ticket Revenue Is $5,034 on the Unadjusted Trial Balance