On May 25, Yellow House Company Received a $650 Check

Multiple Choice

On May 25, Yellow House Company received a $650 check from Grizzly Bean for services to be performed in the future. The bookkeeper for Yellow House Company incorrectly debited Cash for $650 and credited Accounts Receivable for $650. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:

A) debit Cash $650 and credit Unearned Service Revenue $650.
B) debit Accounts Receivable $650 and credit Service Revenue $650.
C) debit Accounts Receivable $650 and credit Cash $650.
D) debit Accounts Receivable $650 and credit Unearned Service Revenue $650.