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GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $71,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a: Debit to Accounts Receivable for $71,000. Debit to Unearned Revenue for $71,000. Credit to Cash for $71,000. Credit to Unearned Revenue for $71,000. Credit to Accounts Receivable for $71,000
GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $71,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a: Debit to Accounts Receivable for $71,000. Debit to Unearned Revenue for $71,000. Credit to Cash for $71,000. Credit to Unearned Revenue for $71,000. Credit to Accounts Receivable for $71,000
GreenLawn Co. will debit the Cash account and credit Unearned Revenue by $71,000. This is because they have received cash, increasing their assets, but they also have anincreased liabilityfrom unearned revenue as the services haven't been provided yet.The subject of this question is related to accounting, specifically about recording a transaction in a general journal. When GreenLawn Co. receives advanced payment, they will debit the cash account because it's an increase in a company's asset. However, because the services have not yet been performed, this payment is consideredunearned revenue, a liability. At this point, the payment is not yet recorded as revenue until the service is actually provided. Therefore, the correct journal entry to record this transaction will be:Debit toCashfor $71,000,Credit toUnearned Revenuefor $71,000.This shows that GreenLawn now has more cash (an increase in assets signaled by the debit) and more responsibility to deliver services (an increase in liabilities signaled by the credit to unearned revenue).Learn more aboutAccounting Transactionhere:brainly.com/question/34190871#SPJ11...