Under the alternative method for accounting for unearned revenue,which of the following pairs of journal entry formats is correct?

Question

Quizplus · Accepted Answer

The correct journal entry format for the alternative method for accounting for unearned revenue is to debit cash or accounts receivable and credit unearned revenue for the initial receipt of payment. Then, as revenue is recognized, a portion of the unearned revenue is credited and revenue is debited. Choice B shows this format. The other choices either do not include a credit to unearned revenue or do not include a debit to revenue.

Under the Alternative Method for Accounting for Unearned Revenue,which of the Following