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Service revenue collected at $32,000. We estimated that 40% of this amount has been collected in...

Service revenue collected at $32,000. We estimated that 40% of this amount has been collected in advance had been earned by the end of the year. Make a general journal entry.
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Answer #1

Service revenue collected = $32,000

Service revenue collected in advance = 32,000 x 40%

= $12,800

Service revenue collected in advance of $12,800 has been earned at the year end. The following adjusting entry will be made at the year end :

Journal

Account Title and Explanation Debit Credit
Unearned service revenue 12,800
Service revenue 12,800
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