Active Education Sells Tickets in Advance for Their Weekly Productions

question 26

Multiple Choice

Active Education sells tickets in advance for their weekly productions and records the proceeds as Unearned revenue.At the end of each month,they make an adjusting entry to account for the tickets used during the month (Ticket revenue.) At March 1,the Unearned revenue account had a credit balance of $3,000.During March,they sold 300 tickets at $20 each,and 250 tickets were used during the month.What is the balance in Unearned revenue at the end of March?

• A) Credit balance of $4,000
• B) Debit balance of $4,000
• C) Credit balance of $2,000
• D) Debit balance of $2,000

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Definitions:

Corrective Tax

A tax designed to correct market outcomes by accounting for externalities, encouraging more efficient allocation of resources.

Variable Toll

A pricing strategy that adjusts toll amounts based on current traffic conditions, often used to manage congestion on roads.

Congested

Describes a state of overcrowding or overloading, often used in the context of traffic, networks, or systems running at or beyond capacity.

Common Resource

A resource like air or water that is not owned by anyone, cannot be easily limited to specific users, and is available for everyone to use, which might lead to overuse and depletion.