Curated Clothing, Incorporated offered books of party dress rental coupons to its patrons at $50...
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Accounting
Curated Clothing, Incorporated offered books of party dress rental coupons to its patrons at $50 per book. Each book contained a certain number of coupons for party dress rentals. During the month of December, 600 books were sold for $30,000, and this amount was credited to Unearned Rental Revenue. At December 31st 2022, it was determined that $20,000 worth of coupons had been used by customers to rent party dresses. The appropriate adjusting entry at December 31st would be:
Debit Rental Revenue and credit Unearned Rental Revenue since the revenue is earned during the month of December.
2. Debit Unearned Rental Revenue and credit Rental Revenue for since the revenue is earned when paid.
3. Debit Unearned Rental Revenue and credit Rental Revenue since the revenue is earned during the month of December.
4. Debit Rental Revenue and credit Unearned Rental Revenue since the revenue is earned when paid.
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