Unearned Sales Revenue
Curtis’s Carpet Cleaning normally charges $90 to clean one room of carpeting. During the holiday season, Curtis offers a promotion to clean the customer’s carpet 10 times at a discounted rate if the customer pays $600 in advance.
Required:
Make the journal entry to record the following transactions.
1. A customer’s prepayment of $600
2. Curtis’s cleaning of the carpet one time
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