Unearned revenue shows a beginning balance of $4,700 and an ending balance of $3,400. The adjusting entry shows a credit to service revenue for $10,200. How much cash was received in advance during the year?

Question

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Unearned revenue decreased by $1,300 ($4,700 - $3,400), which means that $1,300 of services were performed during the year. The adjusting entry shows a credit to service revenue for $10,200, which means that $10,200 of cash was received in advance during the year.

Unearned Revenue Shows a Beginning Balance of $4,700 and an Ending