Question

Active Education sells tickets in advance for their weekly productions and records the proceeds as Unearned revenue. At the end of each month, they make an adjusting entry to account for the tickets used during the month (Ticket revenue.) At March 1, the Unearned revenue account had a credit balance of $3,000. During March, they sold 300 tickets at $20 each, and 250 tickets were used during the month. What is the balance in Unearned revenue at the end of March

Answer 1

$4,000

Step-by-step explanation:

Given that ;

Unearned revenue account has a credit balance of $3,000

During the match , they sold 300 tickets at $20 each

250 tickets were unused during the week

Balance in the unearned revenue at the end of march

= $3,000 + [(300 × $20) - (250 × $20)]

= $3,000 + ($6,000 - $5,000)

= $3,000 + $1,000

= $4,000