On December 10, 2020, Bella Inc. received a cheque for $ 13,625 from a customer for services that Bella will be performing in December 2020 and January 2021. By December 31, 2020, Bella had earned 60% of that amount. Assuming the appropriate year-end adjustments were made, the 2020 balance in Bella Unearned Revenue account will be

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Quizplus · Accepted Answer

By December 31, 2020, Bella Inc. had earned 60% of the $13,625, which means 40% remained unearned. $13,625 * 40% = $5,450, which is the balance in the Unearned Revenue account.