easy · Financial Accounting accounting-cycle-financial-statements

On October 1, a firm receives $6,000 in advance from a customer for a six-month service contract. The bookkeeper correctly debits 'Cash' and credits 'Unearned Revenue.'

What is the 'Unearned Revenue' balance on the December 31 Balance Sheet?

  1. 0
  2. $3,000
  3. $1,000
  4. $6,000

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