On November 1,2012,a company receives $1,800 for services to be provided evenly over the next six months.The December 31,2012,adjusting entry for the company would include a credit to Unearned Revenue for $600.

Question

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The adjusting entry would include a debit to Unearned Revenue for $600, not a credit, as $600 worth of services have been earned by December 31, 2012.

On November 1,2012,a Company Receives $1,800 for Services to Be