On December 31, the trial balance of Fife Company included the following account with a credit balance: Unearned advertising revenue$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$ \$ 16,200 $ If it is determined that the amount of advertising revenue applicable to future periods is $10,400, the correct adjusting entry would be:

Question

Quizplus · Accepted Answer

The adjusting entry should recognize the revenue earned in the current period. The unearned revenue balance is $16,200, and $10,400 is applicable to future periods, meaning $5,800 ($16,200 - $10,400) is earned in the current period. Therefore, debit Unearned Advertising Revenue $5,800 and credit Advertising Revenue $5,800.

On December 31, the Trial Balance of Fife Company Included \quad

On December 31, the Trial Balance of Fife Company Included $\quad$