Patricia Event Planning Service Records Prepaid Expenses and Unearned Revenues

True/False

Patricia Event Planning Service records prepaid expenses and unearned revenues using the alternative treatments. Patricia makes adjusting entries as needed to bring her books to the full accrual basis once a year at the end of the year. On December 15, she collected $1,000 from a customer in advance for a series of events that will start late December and end in March. At the end of the year, she rendered approximately 10% of the services for her customer. The adjusting entry on December 31 will include a debit to Service Revenue for $900.