Body Studio gains a client who prepays ($ 600) for a package of six physical training sessions.

Question:

Body Studio gains a client who prepays $\$ 600$ for a package of six physical training sessions. Body Studio collects the $\$ 600$ in advance and will provide the training later. After two training sessions, what should Body Studio report on its income statement?

a. Cash of $\$ 400$

b. Service revenue of $\$ 200$

c. Service revenue of $\$ 600$

d. Unearned service revenue of $\$ 200$

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