Answer:
Choice A
cash 15,000 debit
accounts receivable 15,000 credit
B
cash 150 debit
gift card liability 150 credit
C
accounts receivable 4,000 debit
services revenue 4,000 credit
D
cash 2,250 debit
unearned revenue 2,250 credit
E
accounts receivable 125 debit
service revenues 125 credit
Explanation:
A
Cash is increased and customer accounts are decreased.
B
Recorded cash proceeds with a liability reflecting the future obligation to render services to a customer.
C
Revenue is recognized, leading to an increase in accounts receivable.
D
Since this collection is in advance, it represents unearned revenue as we have a future service obligation.
E
Revenue should be matched at the time it occurs, which was February and not March.