Indicate which of the following events would result in recognizing revenue for the year in which the described event takes place; indicate the amount and the account. Give the journal entry that would be made in each case. (Take the selling company’s point of view.)
1. Seminole Boosters has received $75,000 in advanced ticket sales for next year’s football games.
2. Comcast Cable collected several accounts that were outstanding from last year. Usually accounts are collected in advance; but in this case, the customer received the cable services last year but didn’t pay until this year.
3. Customers paid $6,500 in advance for services to be rendered next year.