In January,the Huntington Beach Resort (HBR)accepts your reservation and receives your $2,000 payment for a week of sun and fun in California during spring break.In January,HBR will record a journal entry that includes a debit to:

Question

Quizplus · Accepted Answer

The receipt of cash in exchange to a promise to provide 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 $2,000.

In January,the Huntington Beach Resort (HBR)accepts Your Reservation and Receives