When AppGame Company sells three $100 gift cards at the beginning of the month,it should record a $300 debit to ______ and a $300 credit to ______:
A) Cash; Unearned Revenue
B) Cash; Sales Revenue
C) Accounts Receivable; Sales Revenue
D) Unearned Revenue; Cash

Question

Quizplus · Accepted Answer

When gift cards are sold, the company receives cash but has not yet earned the revenue, so it records a debit to Cash and a credit to Unearned Revenue, a liability account, until the service or product is provided.

When AppGame Company Sells Three $100 Gift Cards at the Beginning