Shadow Services Uses the Accrual Method and Reports on a Calendar

question 124

Essay

Shadow Services uses the accrual method and reports on a calendar year. This year, Shadow agreed to a uniform-cleaning contract with Odie Cleaning. Under the contract, Odie bills Shadow for cleaning services as the services are provided. At year-end, Shadow paid Odie $2,350 for the services rendered during the year. In addition, Shadow paid Odie $700 for cleaning services expected in January of next year. What amount, if any, can Shadow deduct for the cleaning services this year?

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Definitions:

ECC (Error Correcting Code)

Uses a mathematical algorithm to verify data accuracy. ECC is more expensive than parity, and the motherboard or memory controllers must also have additional circuitry to process ECC.

RAM Features

Characteristics and functionalities of Random Access Memory, such as size, speed, and type, impacting computer performance.

Sensitive Data

Information that must be protected from unauthorized access to safeguard the privacy or security of an individual or organization.

CMOS Battery

A small battery on the motherboard that powers the BIOS firmware settings memory.