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Nejad Company received a $ 3 , 3 0 0 pre - payment deposit from the Rao Company for the sale of new office furniture.
Nejad Company received a $ prepayment deposit from the Rao Company for the sale of new office furniture.
Nejad will bill Rao an additional $ upon delivery of the furniture to Rao, but this delivery will only take place in the future.
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Upon receipt of the $ prepayment deposit, how much should Nejad recognize for a contract asset, a contract liability, and accounts receivable?
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