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When a customer pays in advance for a product or service, the advance payment received...

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Accounting

When a customer pays in advance for a product or service, the advance payment received by the company is recorded as:

  • A debit to a liability and a credit to a revenue account.

  • A debit to an asset and a credit to a liability account.

  • A debit to an asset and a credit to a revenue account.

  • A debit to a revenue and a credit to an asset account.

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