Question

Brief Exercise 8-52 Unearned Sales Revenue Curtis's Carpet Cleaning normally charges $90 to clean one room of carpeting. During the holiday season, Curtis offers a promotion to clean the customer's carpet 10 times at a discounted rate if the customer pays $600 in advance. Required: 1. Make the journal entry to record the customer's prepayment of $600. (Record sale) 2. Make the journal entry to record Curtis's cleaning of the carpet one time. (Record recognition of sales revenue)

Answer 1

Solution:

Journal Entries - Curtis's carpet
Event	Particulars	Debit	Credit
1	Cash Dr	$600.00
	To Unearned sales revenue		$600.00
	(To record advance received from customer)
2	Unearned sales revenue Dr	$60.00
	To Sales revenue		$60.00
	(To record sales revneue)