If a company has advance ticket sales totaling $2,000,000 for the upcoming football season,the receipt of cash would be journalized as:
A)Debit Sales,credit Unearned Revenue.
B)Debit Unearned Revenue,credit Sales.
C)Debit Cash,credit Unearned Revenue.
D)Debit Unearned Revenue,credit Cash.
E)Debit Cash,credit Ticket sales payable.

Question

Quizplus · Accepted Answer

When a company receives cash in advance of providing goods or services, it records the transaction by debiting Cash (to increase the asset account) and crediting Unearned Revenue (a liability account) because the service or product has not yet been delivered.

If a Company Has Advance Ticket Sales Totaling $2,000,000 for the Upcoming