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IJK Ltd. received $7,000 in advance for a service contract to be fulfilled over the next 14 months, starting October 1, 2023. Record the journal

  1. IJK Ltd. received $7,000 in advance for a service contract to be fulfilled over the next 14 months, starting October 1, 2023. Record the journal entry for the receipt of cash and the monthly adjusting entry for earned revenue. Explain how these transactions affect the financial statements.

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