Adjusting Entries: Unearned Revenue Video Lessons

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Problem: Deferred revenues of $24,000 were received and properly recorded and entered in the ledger of the company. At the end of the accounting period, one-fourth of the deferred revenue had been earned, but unrecorded. The adjusting entry will require a: A) a debit to Unearned Revenues and a credit to Revenues for $6,000. B) a debit to Unearned Revenues and a credit to Cash for $6,000. C) a debit to Unearned Revenues and a credit to Accounts Payable for $6,000. D) a debit to Cash and credit to Revenues for $6,000.

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Problem Details

Deferred revenues of $24,000 were received and properly recorded and entered in the ledger of the company. At the end of the accounting period, one-fourth of the deferred revenue had been earned, but unrecorded. The adjusting entry will require a:

A) a debit to Unearned Revenues and a credit to Revenues for $6,000.

B) a debit to Unearned Revenues and a credit to Cash for $6,000.

C) a debit to Unearned Revenues and a credit to Accounts Payable for $6,000.

D) a debit to Cash and credit to Revenues for $6,000.

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Our tutors rated the difficulty ofDeferred revenues of $24,000 were received and properly reco...as medium difficulty.