On November 1s*, the company received a $50,000 payment from a customer for services to be rendered evenly over the next five months. Deferred Revenue was credited on November 1st and no other entries regarding this transaction were made until December 31st. 9. $ After the adjusting entry has been %24
On November 1s*, the company received a $50,000 payment from a customer for services to be rendered evenly over the next five months. Deferred Revenue was credited on November 1st and no other entries regarding this transaction were made until December 31st. 9. $ After the adjusting entry has been %24
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 6EA: On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services....
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Step 1
Payments collected in advance for goods or services that will be supplied or performed in the future are referred to as deferred revenue, also known as unearned income. The corporation that receives the prepayment records the amount as deferred revenue, a liability, on its balance sheet.
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