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On November 1,2019,Bug Busters Collected $6,000 in Advance for Three

Question 118

Essay

On November 1,2019,Bug Busters collected $6,000 in advance for three months of service to be provided beginning on that date.Bug credited unearned service revenue for $6,000.The books are adjusted only at year-end.
Prepare the adjusting entry required on December 31,2019.

Correct Answer:

verifed

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blured image ($6,000 ÷ 3)= $2,00...

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