Bryson, Inc. collects cash from customers two ways:
a. Accrued revenue. Some customers pay Bryson after Bryson has performed service for the customer. During 2010, Bryson made sales of $60,000 on account and later received cash of $45,000 on account from these customers.
b. Unearned revenue. A few customers pay Bryson in advance, and Bryson later performs the service for the customer. During 2010 Bryson collected $7,500 cash in advance and later earned $3,500 of this amount.
Journalize for Bryson
a. Earning service revenue of $60,000 on account and then collecting $45,000 on account.
b. Receiving $7,500 in advance and then earning $3,500 as service revenue.