Question

18. A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice lessons ($60 per lesson). As of January 31, the company has provided 8 voice lessons. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided. Record the revenue for 8 voice lessons that the company has provided. The company would receive $600 from customers for 10 voice lessons ($60 per lesson).

Answer 1

Debit Deferred Revenue: $480

Credit Service Revenue: $480

Step-by-step explanation:

You only receieve revenue for the services you have provided. A lesson is $60 and you have only provided 8 people service - 8 x 60 = $480 of service revenue,