On Dec. 1, 2015, The Sun Shop received $240 from Carla for a twelve-month membership. The membership allows Carla to tan as much, or as little, as she wants each month. The December 31 adjusting entry is

A. a debit to Unearned Revenue and a credit to Service Revenue for 220.
B. a debit to Cash and a credit to Unearned Revenue for 240.
C. a debit to Unearned Revenue and a credit to Service Revenue for 20.
D. a debit to Service Revenue and a credit to Unearned Revenue for 20.

Ans: C. a debit to Unearned Revenue and a credit to Service Revenue for 20.

Business

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