On December 10, 2017 Peach Inc. received a cheque for $54,500 from a customer for services that Peach will be performing in December 2017 and January 2018. By December 31, 2017, Peach had earned 40% of that amount. Assuming the appropriate year-end adjustments were made, the 2017 balance in Peach’s Unearned Revenue account will be
A. $21,800.
B. $27,250.
C. $32,700.
D. zero.
Answer:C
On December 10, 2017 Peach Inc. received a cheque for $54,500 from a customer for services that Peach will be performing in December 2017 and January 2018. By December 31, 2017, Peach had earned 40% of that amount. Assuming the appropriate year-end adjustments were made, the 2017 balance in Peach’s Unearned Revenue account will be
A. $21,800. B. $27,250. C. $32,700. D. zero.