An advance payment of $1,000 for services was received on December 1 and was recorded...
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Accounting
An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been earned. Demonstrate what the correct adjusting entry should include by choosing the correct statement below.
Multiple choice question.
Debit Unearned revenues for $600.
Debit Unearned revenues for $400.
Debit Service revenue for $400.
Credit Unearned revenues for $400.
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