In January,the Huntington Beach Resort (HBR)accepts your reservation and receives your $2,000 payment for a week of sun and fun in California during spring break.The $2,000 would be recorded by HBR during January as a:

Question

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The $2,000 payment is considered unearned revenue because the service (week of sun and fun in California) has not been provided yet. Therefore, the transaction should be recorded as a debit to Cash and a credit to Unearned Revenue. Once the service is provided during spring break, the unearned revenue can be recognized as earned revenue and recorded as a debit to Unearned Revenue and a credit to Service Revenue.

In January,the Huntington Beach Resort (HBR)accepts Your Reservation and Receives