A Company Performs 20 Days of Work on a 30-Day

question 111

True/False

A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000, with payment received in advance. The $6,000 cash receipt was initially recorded as Unearned Revenue. The required adjusting entry includes a $4,000 debit to Unearned Revenue.

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Definitions:

Supply Chain Process

The series of steps involved in producing and distributing goods or services, from raw material acquisition to delivery to the end user.

Optimization

The action or process of making something as fully perfect, functional, or effective as possible, often through mathematical or computational techniques.