Question
On January 1, a customer paid X Company $39,000 in advance for cleaning services. The cleaning was going to be done once in January, once
On January 1, a customer paid X Company $39,000 in advance for cleaning services. The cleaning was going to be done once in January, once in February, and once in March. What will be the result of X Company's adjusting entry on January 31?
a $13,000 increase in Cash on the Balance Sheet
a $13,000 decrease in Cash on the Balance Sheet
a $13,000 increase in Deferred Revenue on the Balance Sheet
a $13,000 decrease in Retained Earnings on the Balance Sheet
a balance of $13,000 in Deferred Revenue on the Balance Sheet
revenue of $13,000 reported on the Income Statement
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