On August 31, 2013, Peter Services Received $3,500 in Advance

Multiple Choice

On August 31, 2013, Peter Services received $3,500 in advance from a customer. Which of the following would be the journal entry to record the receipt of cash?

A) debit Unearned Revenue $3,500 and credit Cash $3,500
B) debit Cash $3,500 and credit Service Revenue $3,500
C) debit Unearned Revenue $3,500 and credit Service Revenue $3,500
D) debit Cash $3,500 and credit Unearned Revenue $3,500