Which of the following journal entries is prepared when cash is received from a customer prior to delivery of the goods or services?

Question

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When cash is received from a customer prior to delivery of the goods or services, it is recorded as an advance or prepayment, and the journal entry would be a debit to Cash and a credit to Unearned Revenue. Option B shows this type of entry. Option A is incorrect because it shows a receipt of a payment from a customer for goods or services that have already been delivered. Option C is incorrect because it shows a payment to a supplier for goods or services. Option D is incorrect because it shows a payment for rent expense.

Which of the Following Journal Entries Is Prepared When Cash