Service Revenue Melrose Milk Delivery provides weekly gourmet milk delivery to t

Question

Service Revenue

Melrose Milk Delivery provides weekly gourmet milk delivery to the residents of Nicetown. Melrose charges each customer $45 per week for its milk delivery, and it received advance payments for 2,000 weeks of milk delivery services in 2019. At December 31, 2019, two-thirds of the advance payments had been earned.

Required:

After the adjustments are recorded and posted at December 31, 2019, calculate what the balances will be in the Unearned Revenue and Revenue accounts.

Explanation / Answer

unearned revenue (2000*45)= 90000 Service earned (90,000*2/3) 60000 unearned revenue at year end 30,000 unearned revenye 30,000 Revenue 60,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.