Daphne's Spa sells gift certificates for future services.These gift certificate sales should be recorded as:
A)a credit to sales revenue
B)a credit to cash
C)a debit to sales revenue
D)a credit to unearned revenue

Question

Quizplus · Accepted Answer

Gift certificate sales represent unearned revenue, as the business has not yet provided the services for which the gift certificate can be redeemed. Therefore, the sale should be recorded as a credit to unearned revenue.

Daphne's Spa Sells Gift Certificates for Future Services