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b. journalize dexter receiving $4,500 in advance and then earning $3,00…

Question

b. journalize dexter receiving $4,500 in advance and then earning $3,000 as service revenue. start by recording dexters cash collections in advance of services being performed. date accounts debit credit 2024

Explanation:

Step1: Record cash collection in advance

When Dexter receives $4,500 in advance, cash increases (debit) and unearned service revenue (a liability) increases (credit).

DateAccountsDebitCredit
Unearned Service Revenue$4,500

Step2: Record service revenue earned

When Dexter earns $3,000 of the previously unearned revenue, unearned service revenue decreases (debit) and service revenue increases (credit).

DateAccountsDebitCredit
Service Revenue$3,000

Answer:

DateAccountsDebitCredit
Unearned Service Revenue$4,500
2024Unearned Service Revenue$3,000
Service Revenue$3,000