When a company delivers a product or service for which a customer has previously paid,the company records the following:
A)A debit to a revenue account and a credit to a liability account.
B)A debit to a revenue account and a credit to an asset account.
C)A debit to an asset account and a credit to a revenue account.
D)A debit to a liability account and a credit to a revenue account.

Question

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When a company delivers a product or service for which a customer has previously paid, it means the company has fulfilled its obligation, and thus, it should recognize the revenue. The payment received in advance was recorded as a liability (unearned revenue). Upon delivery, the company debits (decreases) the liability account to reflect the fulfillment of the service obligation and credits (increases) a revenue account to recognize the earned revenue.

When a Company Delivers a Product or Service for Which