After Completing Negotiations for the New Computer System, Jane, the Salesperson

question 64

Short Answer

After completing negotiations for the new computer system, Jane, the salesperson, added "Oh, there is also a $5,000 installation and instruction charge. What is Jane doing?

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Definitions:

Unearned Revenue

Income received by a company for goods or services that have yet to be provided to the purchaser.

Prepaid Rent

Prepaid rent refers to rent payments made in advance for a specified period, which is recorded as an asset on the balance sheet until it is consumed or the rental period passes.

Rent Expense

A periodic payment made by a tenant to occupy property or use equipment, recorded as an expense on the income statement.

Adjusting Entry

Entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.