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On March 1, Home Depot Co. collects revenue in advance for the next 12 months from a customer (even though it has not performed services
On March 1, Home Depot Co. collects revenue in advance for the next 12 months from a customer (even though it has not performed services nor provided goods) and credits a liability account. The company subsequently performs services during the accounting period. While preparing the financial statements for the year ended December 31, the company's accountant makes an adjusting journal that increases a liability account decreases a liability account decreases a revenue account decreases an asset account
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