Answer and Explanation:
Since in the question it is mentioned that the Carrie day care received an advance for an agreement made to care for Susan child for the three months i.e. December, January, and February.
So for this, the unearned revenue is debited for $500 and the same is to be considered
Working note:
Amount of Revenue earned = Advance amount × 1 ÷ (From December to February)
= $1,500 × 1 ÷ 3
= $500
