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Two-Fifths (40%) of the Amount Recorded as Unearned Revenue Was

Question 78

Multiple Choice

Two-fifths (40%) of the amount recorded as unearned revenue was earned as of 12/31/10. The adjusting entry would include


A) a credit to service revenue for $3,000.
B) a credit to unearned revenue for $3,000.
C) a credit to service revenue for $2,000.
D) a credit to unearned revenue for $2,000.

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