Patricia Event Planning Service Collects Fees from Their Customers in Advance

question 37

Multiple Choice

Patricia Event Planning Service collects fees from their customers in advance. On January 1, 2015, the balance of her Unearned Revenue account had a balance of $6,000 (Cr.) . During January and February, she collected $3,000 and $1,000 as advance fees. During the two-month period, she rendered services of $6,500. What is the balance in Unearned Revenue at the end of February?

• A)Debit balance of $6,000
• B)Credit balance of $6,000
• C)Debit balance of $3,500
• D)Credit balance of $3,500

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Definitions:

Afterimages

Visual illusions that continue to appear in one's vision after the exposure to the original image has ceased.

Perceptual Adaptation

Perceptual adaptation is the ability of the brain to adjust to changes in sensory stimuli, enabling an individual to continue to function effectively in the environment despite alterations in perception.

Hue

Describes a color or shade, highlighting the aspect of color that is determined by the wavelength of light.

Wavelength

The distance between successive peaks of a wave, often used in the context of electromagnetic waves like light or sound.