In January, the Caribbean Dream Resort Books and Accepts a Cash

Multiple Choice

In January, the Caribbean Dream Resort books and accepts a cash payment for $32,000 for vacation services to be provided during spring break in March. The $32,000 would be recorded during January as a:

A) debit to Cash and a credit to Unearned Revenue.
B) debit to Accounts Payable and a credit to Service Revenue.
C) credit to Accounts Receivable and a credit to Service Revenue.
D) credit to Service Revenue and a debit to Prepaid Expenses.