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20 July, 01:12

On August 31, 2018, Allright Services received $3,500 in advance of performing the service. Which journal entry is needed to record the receipt of cash?

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  1. 20 July, 03:41
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    In the given transaction, the amount is received in advance for performing the service, so the journal entry would be

    Cash A/c Dr $3,500

    To Unearned revenue $3,500

    (Being amount is received in advance)

    For recording the advance transactions, we have to debit the asset account i. e cash account and credit the liability account i. e. unearned revenue account.
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