Education for All sells tickets in advance for their weekly productions and records the proceeds as Unearned Revenue. At the end of each month, Education for All makes an adjusting entry to account for the tickets used during the month (ticket revenue.)On March 1, the Unearned Revenue account had a credit balance of $4,000. During March, they sold 300 tickets at $20 each and 250 tickets were used during the month. What is the balance in Unearned Revenue at the end of March?
A)Credit balance of $5,000
B)Debit balance of $4,000
C)Credit balance of $1,000
D)Debit balance of $5,000

Question

Quizplus · Accepted Answer

The initial balance was $4,000. They sold 300 tickets at $20 each, adding $6,000 to Unearned Revenue, making it $10,000. 250 tickets were used, recognizing $5,000 as revenue. The remaining balance is $5,000.

Education for All Sells Tickets in Advance for Their Weekly