Hi, I have a question on the review problem of chapter 3 of Needles Principles o

Question

Hi, I have a question on the review problem of chapter 3 of Needles Principles of Accounting 11 edition. Question 1 of the review problem asks to prepare T accounts for the above adjusting entries. My question is specifically with the (f) entry. It states, "Revenues received in December in advance of services yet to be performed totaled $160." I would assume for this I would Debit service revenue, and credit unearned revenue, but in the answer key they do just the opposite, they debit unearned revenue and credit service revenue. Why is this? Thanks!

Explanation / Answer

Entry would be as below because we debit the receiver account.

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