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During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue.
Problem 1: The adjusting entry to record on July 31 includes:
a. a credit to Unearned Revenue for $400
b. a credit to Revenue for $2,000
c. a debit to Unearned Revenue for $400
d. a debit to Cash for $2,000
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