On May 25, Carlin Company Received a $550 Check from Andy

question 128

Multiple Choice

On May 25, Carlin Company received a $550 check from Andy Jeter for services to be performed in the future. The bookkeeper for Carlin Company incorrectly debited Cash for $550 and credited Accounts Receivable for $550. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:

• A) debit Cash $550 and credit Unearned Service Revenue $550.
• B) debit Accounts Receivable $550 and credit Service Revenue $550.
• C) debit Accounts Receivable $550 and credit Cash $550.
• D) debit Accounts Receivable $550 and credit Unearned Service Revenue $550.

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