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 1 March,the Unearned revenue account had a credit balance of $5000.During March,they sold 600 tickets at $30 each and 550 tickets were used during the month.What is the balance in Unearned revenue at the end of March?
A)credit balance of $6500
B)debit balance of $6500
C)credit balance of $5000
D)debit balance of $5000

Question

Quizplus · Accepted Answer

The initial unearned revenue was $5000. They sold 600 tickets at $30 each, adding $18000 to unearned revenue. 550 tickets were used, recognizing $16500 as revenue. The remaining unearned revenue is $5000 + $18000 - $16500 = $6500.

Education for All Sells Tickets in Advance for Their Weekly