In January,the Huntington Beach Resort (HBR)accepts your reservation and receives your $2,000 payment for a week of sun and fun in California during spring break in March.The $2,000 would be recorded by HBR during January as a debit to:

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The $2,000 payment is a prepayment for a service that will be provided in March. Therefore, it should be recorded as a debit to Cash (as the payment is received) and a credit to Unearned Revenue (as the service is not yet provided). This is because revenue cannot be recognized until the service is actually provided.

In January,the Huntington Beach Resort (HBR)accepts Your Reservation and Receives