Pluto Promotions Sells Tickets in Advance for Its Weekly Productions

question 52

Multiple Choice

Pluto Promotions sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue.At the end of each month,the company makes an adjusting entry to account for the tickets used during the month (ticket revenue. ) On March 1,the Unearned Revenue account had a credit balance of $2,000.During March,it sold 300 tickets at $30 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 $3,500
• B)debit balance of $2,000
• C)credit balance of $2,000
• D)debit balance of $3,500

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Definitions:

Procedural Unconscionability

A legal term referring to a situation where the process of making a contract is so unfair or oppressive to one party that it affects the validity of the agreement.

Nonperformance

The failure to fulfill a duty or obligation, particularly in terms of meeting the terms of a contract.

Disaffirm The Contract

The legal right of a party to renounce or revoke consent to a contract, typically due to incapacity or misrepresentation.

By Words

Through verbal expression or speech rather than written documents.