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where did the $4,000 come from in deferred revenue? Suppose a customer rents a vehicle for three months from Commodores Rental on November 1, paying

where did the $4,000 come from in deferred revenue?

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Suppose a customer rents a vehicle for three months from Commodores Rental on November 1, paying $6,000 ($2,000/month). (1) Record the rental for Commodores on November 1. (2) Record the adjusting entry on December 31. (3) Calculate the year-end adjusted balances of the Deferred Revenue and Service Revenue accounts (assuming the balance of Deferred Revenue at the beginning of the year is $0). Debit Credit Cash 6,000 Deferred Rev 6,000 Deferred Rev. 4,000 Service Rev. 4,000 Deferred Rev. Service Rev. 1/1 0 0

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