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Service revenue earned but not yet collected or billed by the end of the period was...

Service revenue earned but not yet collected or billed by the end of the period was $200; therefore, the adjusting entry should be: Debit--Accounts receivable, $200; Credit--Unearned service revenue, $200. True or False

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Answer #1

Service revenue earned = $200

Service revenue was earned but no cash was collected.

It will have the following effects:

- Assets will increase in the form of accounts receivable.

- Service revenue will increase.

Hence, the following adjusting entry is needed:

General Journal Debit Credit
Accounts receivable $200
Service revenue $200
( To record service revenue earned)

Since the revenue has been earned, it cannot be termed as unearned service revenue.

The given statement is false.

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks

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