If a company has advance ticket sales totaling $2,000,000 for the upcoming football season,the receipt of cash would be journalized as:
A)Debit Sales,credit Unearned Revenue.
B)Debit Unearned Revenue,credit Sales.
C)Debit Cash,credit Unearned Revenue.
D)Debit Unearned Revenue,credit Cash.
E)Debit Cash,credit Revenue.

Question

Quizplus · Accepted Answer

The receipt of cash for advance ticket sales is recorded as a debit to Cash (increasing assets) and a credit to Unearned Revenue (a liability account) because the revenue has not yet been earned.

If a Company Has Advance Ticket Sales Totaling $2,000,000 for the Upcoming