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Polly's Painting received $1,800 on August 18 for painting services to be completed by September 30. At that time, $1,800 was credited to Unearned Service
Polly's Painting received $1,800 on August 18 for painting services to be completed by September 30. At that time, $1,800 was credited to Unearned Service Revenue. On August 31, Polly's has competed half of the painting. If Polly's fails to make an adjusting entry in August for $900, what will be the result? Select answer from the options below Service Revenue will be understated by $900 and net income will be overstated by $900. Service Revenue will be understated by $900 and net income will be understated by $900. Service Revenue will be overstated by $900 and net income will be overstated by $900. Service Revenue will be overstated by $900 and net income will be understated by $900
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