Videobusters, inc. offered books of video rental coupons to its patrons at $40 per book. each book contained a certain number of coupons for video rentals. during the current period 500 books were sold for $20,000, and this amount was credited to unearned rental revenue. at the end of the period, it was determined that $15,000 worth of coupons had been used by customers to rent videos. the appropriate adjusting entry at the end of the period would be:
a. debit rental revenue $5,000 and credit unearned rental revenue $5,000.
b. debit rental revenue $15,000 and credit unearned rental revenue $15,000.
c. debit unearned rental revenue $5,000 and credit rental revenue $5,000.
d. debit unearned rental revenue $15,000 and credit rental revenue $15,000.

The answer is:

Dr Unearned rental revenue $15,000

Cr Rental Revenue $15,000

Explanation:

According to the revenue recognition principle, Videobusters should only recognize revenue when it has substantially completed the earnings process. So the $20,000 it received from selling rental coupons should be credited to Unearned rental revenue. But after $15,000 worth of coupons were actually used to rent videos, then  they should change $15,000 to earned revenue. They should do this by debiting Unearned rental revenue and crediting rental revenue.

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.