The receipt of $6,000 in advance ticket sales would be recorded as:
A) Debit Cash,credit Unearned Revenue.
B) Debit Unearned Revenue,credit Sales.
C) Debit Sales,credit Unearned Revenue.
D) Debit Unearned Revenue,credit Cash.
E) Debit Cash,credit Revenue PayablE.

Question

Quizplus · Accepted Answer

The receipt of $6,000 in advance ticket sales is not revenue yet, as the tickets have not been used. Therefore, it should be recorded as a liability (unearned revenue) until the tickets are redeemed. The transaction would be recorded as a debit to cash and a credit to unearned revenue. Option A correctly reflects this.

The Receipt of $6,000 in Advance Ticket Sales Would Be