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Database Services Sells Service Plans for Commercial Computer Maintenance

Question 37

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Database Services sells service plans for commercial computer maintenance.The price for each plan is $1,350 per year,paid in advance.On October 1,2017,a service plan was sold to a new customer for cash,and the plan covers the period October 1,2017 to September 30,2018.Prepare the December 31,2017 adjusting entry.

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