Sparkle Cleaning Crew provides cleaning services for business offices. Each customer would normally pay $250...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Sparkle Cleaning Crew provides cleaning services for business offices. Each customer would normally pay $250 per month for office cleaning. For new customers, Sparkle Cleaning Crew offers an incentive of $200 per month if the customer pays for 3 months in advance or $600. On April 1, the accountant received $600 from a new business customer for services to be completed in April, May and June. The accountant debited Cash $600 and credited Cleaning Service Income $600.
1) What do you see is wrong with this entry?
2) How should deferred income be handled?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.