Metro Event Planning Services Collects Fees from Its Customers in Advance

question 74

Multiple Choice

Metro Event Planning Services collects fees from its customers in advance. On January 1, 2019, the balance of its Unearned Revenue account was $4,000 (CR) . During January and February, the company collected $2,000 and $600 as advance fees. During the two-month period, it performed services of $5,500 related to the deferred revenue. What is the balance in Unearned Revenue at the end of February?

• A) debit balance of $4,000
• B) credit balance of $4,000
• C) debit balance of $1,100
• D) credit balance of $1,100

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Definitions:

Classical Economist

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