On May 25 Mt

Multiple Choice

On May 25 Mt. Hood Company received a $370 check from Douglas Fir for services to be performed in the future. The bookkeeper for Mt. Wood Company incorrectly debited Cash for $370 and credited Accounts Receivable for $370. The amounts have been posted to the ledger. To correct this entry the bookkeeper should:

A) debit Cash $370 and credit Unearned Service Revenue $370.
B) debit Accounts Receivable $370 and credit Service Revenue $370.
C) debit Accounts Receivable $370 and credit Cash $370.
D) debit Accounts Receivable $370 and credit Unearned Service Revenue $370.