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Summer leasing received $11,400 for 24 months rent in advance. how should summer record this transaction?

Respuesta :

Since Summer Leasing received funds in advance, they should record the transaction as Debit Cash for the $11,400 and credit Unearned Revenue. Though they received the cash it is technically unearned revenue because they have not provided the service just yet to earn the money. Once the rent has been used, the money will leave unearned revenue and move to revenue. 
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