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When a company receives a deposit from a customer to protect itself against nonpayment for future services, the deposit should be classified by the company
When a company receives a deposit from a customer to protect itself against nonpayment for future services, the deposit should be classified by the company as:
- part of the allowance for doubtful accounts
- a deferred credit deducted from accounts receivable
- a liability
- revenue
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
129208829X, 1292088297, 978-1292088297
