medium · Financial Accounting accounting-cycle-financial-statements
Zenith Apparels receives $12,000 in December for custom uniforms to be delivered in February. The accountant recorded this as Service Revenue.
What is the correcting/adjusting entry needed at December 31?
- Debit Unearned Revenue $12,000; Credit Service Revenue $12,000
- Debit Service Revenue $12,000; Credit Accounts Receivable $12,000
- Debit Cash $12,000; Credit Unearned Revenue $12,000
- Debit Service Revenue $12,000; Credit Unearned Revenue $12,000
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