Sierra Event Planning Services, Inc. records deferred expenses and deferred revenues using alternative treatments. It makes adjusting entries as needed to bring its books to the full accrual basis once a year at the end of the year On December 15, it collected $1,000 from a customer in advance for a series of events that will start late December and end in March. At the end of the year, it had performed approximately 10% of the services for its customer. The adjusting entry on December 31 will include a debit to Service Revenue for $900.

Indicate whether the statement is true or false

TRUE .Service Revenue = $1,000 x 90% = $900