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Taylor Company receives $2,400 on December 1 of the current year for services to be performed equally over the next 12 months. Assuming Taylor
Taylor Company receives $2,400 on December 1 of the current year for services to be performed equally over the next 12 months. Assuming Taylor records deferred revenues using the alternative treatment, what would be the entry on December 1 of the current year? A. Debit Cash and credit Service Revenue for $200. B. No entry is needed until the expense is incurred. C. Debit Service Revenue and credit Cash for $2,400. D. Debit Cash and credit Service Revenue for $2,400.
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