On December 1, Simpson Marketing Company received $3,900 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Multiple Choice a credit to Services Revenue for $2,600. a debit to Unearned Revenue for $1,950. a debit to Services Revenue for $2,600. a debit to Services Revenue for $3,900. a credit to Unearned Revenue for $1,300.
On December 1, Simpson Marketing Company received $3,900 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Multiple Choice a credit to Services Revenue for $2,600. a debit to Unearned Revenue for $1,950. a debit to Services Revenue for $2,600. a debit to Services Revenue for $3,900. a credit to Unearned Revenue for $1,300.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:On December 1, Simpson Marketing Company received $3,900 from a customer for a 2-month marketing plan to be completed January 31 of the
following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include:
Multiple Choice
a credit to Services Revenue for $2,600.
a debit to Unearned Revenue for $1,950.
a debit to Services Revenue for $2,600.
a debit to Services Revenue for $3,900.
a credit to Unearned Revenue for $1,300.
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