$2$ Adaptive Learning

$12\mathrm{.}2$ Unearned Revenues

Bertolino's Italian Restaurant accepted a reservation for its private dining room for a party in February. It received a security deposit of $$500,$ which will be returned after the dinner is held. How should Bertoling's record the receipt of the down payment?

Bertolino's should not record the deposit since it is not a true sale.

Bertolino's should classify the deposit as sales revenue on the date it is paid.

Bertoling's should classify the deposit as a liability.

Nelther the balance sheet nor income statement