Multiple Choice
On September 1,Peterson Maintenance Company contracted to provide monthly maintenance services for the next six months at a rate of $2,000 per month.The client paid Peterson $12,000 on September 1.Assuming Peterson records deferred revenues using the alternative treatment,what would be the entry on September 1?
A) Debit Cash and credit Unearned Revenue for $12,000
B) No entry is needed until the services are performed
C) Debit Cash and credit Service Revenue for $12,000
D) Debit Prepaid Maintenance and credit Cash for $12,000
Correct Answer:
Verified
Correct Answer:
Verified
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