Sparkle Cleaning Crew provides cleaning services for business offices. Each customer would normally pay $250 per month for office cleaning. For new customers, Sparkle Cleaning Crew offers an incentive of $200 per month if the customer pays for 3 months in advance or $600. On April 1, the accountant received $600 from a new business customer for services to be completed in April, May and June. The accountant debited Cash $600 and credited Cleaning Service Income $600.

1) What do you see is wrong with this entry?

2) How should deferred income be handled?