On April 1, 2017, Planet Services received $8,000 in advance of performing the services from a customer for three months of service — April, May and June. What would be the journal entry to adjust the accounts at the end of May?
A) Debit Service Revenue $2,667, and credit Unearned Revenue $2,667.
B) Debit Unearned Revenue $5,333, and credit Service Revenue $5,333.
C) Debit Unearned Revenue $8,000, and credit Service Revenue $8,000.
D) Debit Service Revenue $5,333, and credit Accounts Receivable $5,333.
B .Unearned Revenue ($8,000 x 2/3 ) 5,333
Service Revenue 5,333
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