Describe the transaction shown in the following journal entry.
A)Paid cash to a customer who requested a refund.
B)Received cash in advance for work to be performed in future months.
C)Recorded adjusting entry for work completed.
D)Received cash for services completeD.The debit to cash and credit to unearned revenue would increase both of these accounts. That would be the correct journal entry to record receiving cash in advance for work to be performed in the future.

Question

Describe the transaction shown in the following journal entry. 
A)Paid cash to a customer who requested a refund. 
B)Received cash in advance for work to be performed in future months. 
C)Recorded adjusting entry for work completed. 
D)Received cash for services completeD.The debit to cash and credit to unearned revenue would increase both of these accounts. That would be the correct journal entry to record receiving cash in advance for work to be performed in the future.

Quizplus · Accepted Answer

The journal entry code includes "TB3572," which indicates it is related to cash transactions. The account code "00" usually represents cash, indicating that cash is involved in the transaction. The description also specifies that the transaction is related to receiving cash in advance for work to be performed in future months. Therefore, the correct option is B, as it represents the receipt of cash in advance for future work.

Describe the Transaction Shown in the Following Journal Entry