Bijan Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned.Which of the following shows the proper entry using T-accounts?

Question

Quizplus · Accepted Answer

The proper entry using T-accounts would be to debit the unearned revenue account for $4,000 (reducing the liability), and credit the revenue account for $4,000 (increasing the revenue). This can be represented as follows:

Unearned Revenue 
Debit: $4,000

Revenue 
Credit: $4,000

Option D shows this entry using T-accounts.

Bijan Corporation Recorded the Adjusting Entry to Recognize $4,000 of Revenue