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Suppose your company sells services of $360 in exchange for $200 cash and $160 on account. Required: Prepare the journal entry to record this transaction.
Suppose your company sells services of $360 in exchange for $200 cash and $160 on account.
Required:
- Prepare the journal entry to record this transaction.
- Identify the amount that should be reported as net cash flow from operating activities.
- Identify the amount that would be included in net income.
- Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).
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