Effect of this transaction

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Company A posted the service revenue earned for the month of May of $1,500 the following way:

Description                                        Debit                            Credit

Service Revenue                               $1,500

Unearned Revenue                                                                $1500

What is the effect of this transaction?

a. Service revenue is too low

b. Unearned revenue is overstated by $1,500

c. Cash should have been debited

d. Both A&B are correct

Reference no: EM13918470

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