Skip to main content

My Courses

Calculators AI Tools Study Prep Blog Study Prep Home

Adjusting Entries: Unearned Revenue

3. Accrual Accounting Concepts / Adjusting Entries: Unearned Revenue / Problem 4

Problem 4

A client prepaid \$2,400 for a 12-month service contract. After 3 months, how much revenue should be recognized?

A

\$1,200

B

\$2,400

C

\$300

D

\$600