If a company has advance ticket sales totaling 2,000,000 for the upcoming football season, the receipt of cash would be journalized as: Debit Unearned Revenue credit Cash. Debit Cash, credit Unearned Revinue. Debit Unearned Revenue,credit Sales. Debit Cash, credit Ticket sales payable. Debit Sales, credit Unearned Revenue.

Question

If a company has advance ticket sales totaling 2,000,000 for the upcoming football season, the receipt of cash would be journalized as: Debit Unearned Revenue credit Cash. Debit Cash, credit Unearned Revinue. Debit Unearned Revenue,credit Sales. Debit Cash, credit Ticket sales payable. Debit Sales, credit Unearned Revenue.

Answer 1

When a company receives cash in advance for services to be provided in the future, it records the receipt of cash and recognizes a liability because the service has not yet been performed. The correct journal entry would be:Debit Cash, credit Unearned Revenue.This reflects that the company has received cash but still owes the service (in this case, the football games) to the customers.So, the correct answer is:Debit Cash, credit Unearned Revenue.

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