Service revenue earned but not yet collected by the end of the period was $200; therefore, the adjusting entry should be: Debit--Service revenue receivable, $200; Credit--Unearned service revenue, $200.

Question

Quizplus · Accepted Answer

The correct adjusting entry should be: Debit--Accounts Receivable (or Service Revenue Receivable), $200; Credit--Service Revenue, $200. This records the earned revenue that has not yet been collected in cash. Unearned Service Revenue is used for revenue received in advance, not earned revenue.

Service Revenue Earned but Not Yet Collected by the End