Which of the following journal entries is prepared when a customer pays cash prior to delivery of the goods or services?
A) Cash
$ \quad $Revenues
B) Cash
$ \quad $Unearned revenues
C) Unearned revenues
$ \quad $$ \quad $Cash
D) Cash
$ \quad $Accounts receivable

Question

Which of the following journal entries is prepared when a customer pays cash prior to delivery of the goods or services?
A) Cash 
$ \quad $Revenues
B) Cash
$ \quad $Unearned revenues
C) Unearned revenues
$ \quad $$ \quad $Cash
D) Cash
$ \quad $Accounts receivable

Quizplus · Accepted Answer

When a customer pays cash in advance, the company records the cash received and credits unearned revenues, a liability account, until the goods or services are delivered.

Which of the Following Journal Entries Is Prepared When a Customer