On 31 December 2012, the Balance in Pinnacle Exploration Company's

Multiple Choice

On 31 December 2012, the balance in Pinnacle Exploration Company's Unearned revenue account is credit of $4 200. In January 2013, the company received an advance payment of $12 000 from a new customer for services to be performed. By 31 January, adjustments had been made to recognise $8 500 of the revenue which had been earned during January. What would be the balance in Unearned revenue on 31 January 2013?

A) $3 500 credit
B) $7 700 credit
C) $16 200 credit
D) $8 500 debit