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On December 15,2018,Donald Services Company Collected Revenue of $3,000 in Advance

question 148

Essay

On December 15,2018,Donald Services Company 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 31,2018.Omit explanation.


Definitions:

Performance Measure

Indicators used to evaluate and assess the effectiveness, efficiency, and success of an organization's activities or employee's performance.

Controllable Margin

A metric used in management accounting, representing the difference between sales revenue and controllable costs.

Controllable Margin

The portion of income that can be directly influenced by management decisions, excluding fixed costs and uncontrollable expenses.

Operating Assets

Assets used by a business in its daily operations to generate revenue, excluding investment and non-operational assets.

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