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Solutions Services Sells Service Plans for Commercial Computer Maintenance

Question 30

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Solutions Services sells service plans for commercial computer maintenance.The price for each plan is $1,350 per year,paid in advance.On October 1,2018,a service plan was sold to a new customer for cash,and the plan covers the period October 1,2018 to September 30,2019.Adjusting entries are made on December 31 of each year.Prepare the journal entry for September 30,2019.Round to two decimal places.Omit explanation.

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