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On October 1, your calendar year company, which is on the accrual basis, signs a $20,000 painting contract and makes a $4,000 advance, which you
On October 1, your calendar year company, which is on the accrual basis, signs a $20,000 painting contract and makes a $4,000 advance, which you record in Painting Expense. If, on December 31, management informs that your 25% of the work has been completed, what adjusting entry will you record?
- Debit Painting Expense for $1,000
- Debit Painting Expense for $9,000
- Debit Painting Expense for $5,000
- Credit Accounts Payable for $5,000
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