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Palm Beach Hotel accepts telephone reservations for rooms during its summer tourist season, but requires a 20% cash deposit by June 1st. The realization principle
Palm Beach Hotel accepts telephone reservations for rooms during its summer tourist season, but requires a 20% cash deposit by June 1st. The realization principle indicates that the room rental revenue from these guests should be recorded in the period that the:
A) 20% deposit is received
B) telephone reservation is received
C) 80% balance is collected
D) guests stay in the motel
*Please explain your answer*
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