Sally Lawn Services has a formal agreement with Mr$.$ Bizza to treat his lawn on October $31$ and November $30,2021.$ The date of the agreement was October $1,2021.$ The agreed upon cost of the total service is $$1,000,$ $$250$ to be paid on October $31$ and the remaining $$750$ to be paid on November $30.$ Although not required as part of the agreement, Mr$.$ Bizza made an advance payment of $$500$ to Sally Lawn Services on October $1,2021.$ Assuming Sally Lawn Services uses the accrual basis of accounting, Sally Lawn Services should record deferred revenue of $$250$ on October $31.$

True

False