On July 7, Saints Incorporated received $10,000 in cash from a customer for services to be provided on October 10. Which of the following describes how the transaction should be recorded on July 7?
A) Debit Cash $10,000, credit Service Revenue $10,000.
B) Debit Accounts Receivable $10,000, credit Service Revenue $10,000.
C) Debit Cash $10,000, credit Deferred Revenue $10,000.
D) Debit Deferred Revenue $10,000, credit Cash $10,000.
Answer: C
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Accounting
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