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

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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

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