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Tesla, Inc. collected $200,000 in advance for car services to be provided evenly over the next 6 months. Requirements: a. Prepare the journal entry to
Tesla, Inc. collected $200,000 in advance for car services to be provided evenly over the next 6 months. Requirements: a. Prepare the journal entry to record the receipt of advance payment by Tesla, Inc. b. Determine the liability account affected. c. Calculate the portion of revenue recognized for the first month. d. Record the revenue earned. e. Analyze the impact of the transaction on the balance sheet and income statement.
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