mercury, inc. sells tickets in advance for its weekly productions and records the proceeds as unearned revenue. at the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) on march 1, the unearned revenue account had a credit balance of $ 5 comma 000. during march, mercury sold 400 tickets at $ 20 each, and 350 tickets were used during the month. what is the balance in unearned revenue at the end of march?

The balance in Unearned Revenue at the end of March is $6,000

Explanation:

The computation of the unearned revenue balance at the end of March is shown below:

= Credit balance of unearned revenue + amount received from the sale of tickets - using the amount

= $5,000 + $8,000 - $7,000

= $6,000

The amount received equals to

= Number of tickets × selling price

= 400 tickets × $20

= $8,000

And, the using amount equal to

= Number of tickets used × selling price

= 350 tickets × $20

=$7,000

the first one $24,630