Multiple Choice
Munster Company requires clients to pay in advance for legal services. One such client made a $4,000 payment on May 1, and Munster Company recorded this transaction in the appropriate liability account. As of May 20, the legal services which the client requested had been completed. The May 20 accounting entry will:
A) decrease assets and decrease liabilities
B) increase revenues and increase liabilities
C) decrease liabilities and increase revenues
D) decrease assets and increase revenues
Correct Answer:
Verified
Correct Answer:
Verified
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