Under the alternative method for accounting for unearned revenue, which of the following pairs of journal entry formats is correct?
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E

Question

Under the alternative method for accounting for unearned revenue, which of the following pairs of journal entry formats is correct? 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Quizplus · Accepted Answer

The correct journal entry format for the alternative method of accounting for unearned revenue is to recognize the revenue when it is earned, rather than when it is received. The journal entry format should include a debit to the unearned revenue account and a credit to the revenue account. 
Choice B includes the correct debit and credit accounts for the journal entry format for the alternative method, therefore it is the best choice.

Under the Alternative Method for Accounting for Unearned Revenue, Which