Answer:
Option C is correct.
The correcting entry is Cash 450 Accounts Receivable 270 Unearned Service Revenue 720
Step-by-step explanation:
1. Cash received is $ 720 and the amount booked is $ 270,
Hence, Cash Balance of $ 720 - $ 270 which is $ 450 is recorded.
2. Accounts Receivable Account was wrongly credited and hence is debited to reverse the effect.
3. Unearned Service revenue account was not recorded and hence is now recorded.