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Instead of reporting the $80,000 as revenue, how else might you report this amount?
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Instead of reporting the $80,000 as revenue, how else might you report this amount?

User Cranio
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1 Answer

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Answer: Unearned Revenue

Step-by-step explanation:

The $80,000 should be recorded as Unearned Revenue because under the Accrual Principle of Accounting, revenue should only be recognized when the services that were paid for her been given.

If the services have not been given and revenue is accrued, the company should not recognize this as revenue but rather as Unearned revenue. They will only recognize it when they have delivered the rent service. Until then, the unearned revenue will be considered a liability.

Instead of reporting the $80,000 as revenue, how else might you report this amount-example-1
User JLZenor
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