20 On April 1, a company received $2,400 in advance for 12 months of serviceto be provided, with the service period beginning on April 1. The service isprovided evenly throughout the year. As of the end of the year, no entry has yetbeen made to adjust the amount initially recorded.Which debit or credit is correctly included in the adjusting journal entrynecessary on December 31?O Credit to unearned service revenue for $600.Debit to service revenue for $1,800.Debit to unearned service revenue for $1,800.◇ Credit to service revenue for $600.

Step 1: Understand the Initial TransactionThe company received $2,400 upfront for a 12-month…

Answered: 20 On April 1, a company received…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 5P

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