Reference no: EM13788975
On July 7, 2012, Saints Inc. received $10,500 in cash from a customer for services to be provided on October 10, 2012. Which of the following describes how the transaction should be recorded on July 7, 2012?
Debit unearned revenue $10,500, credit cash $10,500.
Debit accounts receivable $10,500, credit service revenue $10,500.
Debit cash $10,500, credit service revenue $10,500.
Debit cash $10,500, credit unearned revenue $10,500.
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