On December 15, Duncan Services, Inc. collected revenue of $3,000 in advance from a new client, and agreed to provide services to the client for the period of December 15 through January 15 of the following year

Assume that the company records deferred revenues using the alternative treatment, and journalize the adjusting entry recorded on December 31.
What will be an ideal response

Service Revenue 1,500
Unearned Revenue 1,500 .Service Revenue = $3,000 / 2 = $1,500

Business

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