In April,the Surf and Sand Hotel books and accepts a cash payment for $25,600 for vacation services to be provided during in July.The journal entry recorded in April will include a debit to:

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The receipt of cash in exchange to a promise to provide vacation services in the future creates an obligation to perform those services;this obligation is recorded as a liability called Deferred Revenue.The journal entry will include a debit to Cash and a credit to Deferred Revenue for $25,600.

In April,the Surf and Sand Hotel Books and Accepts a Cash