Meggie's Fitness center received $720 from a customer in advance for one year membership in the fitness center.The entry that would be made to record the fee receipt is:

Question

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The entry to record the fee receipt would be a debit to Cash for $720 (as cash is being received) and a credit to Unearned Revenue for $720 (as the revenue has not yet been earned and is therefore considered a liability). Choice B is the only option that has both of these accounts being affected.

Meggie's Fitness Center Received $720 from a Customer in Advance Unearned revenue 720 Cash 720\begin{array}{l}\text { Unearned revenue } &720\\\text { Cash }&&720\end{array} Unearned revenue Cash ​720​720​

Meggie's Fitness Center Received $720 from a Customer in Advance $\begin{array}{l}\text { Unearned revenue } &720\\\text { Cash }&&720\end{array}$