Question

Gretchen has just finished preparing the trial balance for her company. Upon looking at the balance, she sees that it has not accounted for unearned revenues the company has received through advance payments by customers. What should Gretchen do at this point?

Answer 1

Answer:

The correct answer is: Enter adjustments for these payments.

Explanation:

The Trial Balance is a worksheet recording all the credit and the debit balances of the ledger of a company. Eventually, the sum of all the credits must be equal to the sum of all the debits. If an account was forgotten to be included -just like Gretchen's case, adjustments to counterbalance the amount that is to be recorded should be entered.