On August 31, 2013, Peter Services Received $3,500 in Advance

question 17

Multiple Choice

On August 31, 2013, Peter Services received $3,500 in advance from a customer. Which of the following would be the journal entry to record the receipt of cash?

• A)debit Unearned Revenue $3,500 and credit Cash $3,500
• B)debit Cash $3,500 and credit Service Revenue $3,500
• C)debit Unearned Revenue $3,500 and credit Service Revenue $3,500
• D)debit Cash $3,500 and credit Unearned Revenue $3,500

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Definitions:

Defensive Industries

Industries with below-average sensitivity to the state of the economy.

Durable Goods

Consumer products that have a long life span (over three years) and are used over time, such as cars, appliances, and furniture.

Food Producers

Food Producers are companies or individuals engaged in the cultivation, preservation, and distribution of food products and commodities to consumers.

Defensive Industries

Sectors of the economy expected to remain stable during various phases of the business cycle, often including utilities and consumer staples.