Solution: Rivard Company records $50,000 in the unearned revenue account during its first year of operations. The ending balance of unearned revenue is determined to be $22,500. The adjusting entry involves a:

Problem

Rivard Company records $50,000 in the unearned revenue account during its first year of operations. The ending balance of unearned revenue is determined to be $22,500. The adjusting entry involves a:

a) Debit to service revenue for $22,500

b) Debit to unearned revenue for $22,500

c) Credit to service revenue for $22,500

d) Credit to service revenue for $27,500

e) Credit to unearned revenue for $27,500