On 1 May 2018, Dress in Style Received a $2000

Multiple Choice

On 1 May 2018, Dress in Style received a $2000 advance payment from a customer for the design and making of a formal gown. The gown is expected to be completed by the end of August 2018. The correct accounting entry to initially record the $2000 is:

A) DR Bank $2000; CR Unearned income $2000
B) DR Unearned income $2000; CR Bank $2000
C) DR Bank $2000; CR Accounts payable $2000
D) DR Income earned $2000; CR Bank $2000