Chapter 2, Problem 2MCQ

On May 1, Mattingly Lawn Service collected $2,500 cash from a customer in advance of five months of lawn service. Mattingly’s journal entry to record this transaction includes a

1. a. Credit to Unearned Lawn Service Fees for $2,500.
2. b. Debit to Lawn Service Fees Earned for $2,500.
3. c. Credit to Cash for $2,500.
4. d. Debit to Unearned Lawn Service Fees for $2,500.
5. e. Credit to Common Stock for $2,500.