Which of the following journal entries is prepared when cash is received from a customer prior to delivery of the goods or services?

A)
B)
C)
D)

Question

Which of the following journal entries is prepared when cash is received from a customer prior to delivery of the goods or services?A)   B)   C)   D)

Angelo Lasalita · Accepted Answer

Final Answer : B, Explanation :  When cash is received from a customer prior to delivery of the goods or services, it is recorded as an advance or prepayment, and the journal entry would be a debit to Cash and a credit to Unearned Revenue. Option B shows this type of entry. Option A is incorrect because it shows a receipt of a payment from a customer for goods or services that have already been delivered. Option C is incorrect because it shows a payment to a supplier for goods or services. Option D is incorrect because it shows a payment for rent expense.

Which of the following journal entries is prepared when cash is received from a customer prior to delivery of the goods or services?

A)
B)
C)
D)

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Learning Objectives

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