How should Pemco record the receipt of cash on January 1?
A)liability of $480,000
B)revenue of $240,000
C)liability of $18,750
D)revenue of $18,750

Name: How should Pemco record the receipt of cash on January 1? A)liability of $480,000 B)revenue of $240,000 C)liability of $18,750 D)revenue of $18,750
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Question

Quizplus · Accepted Answer

Pemco should record the receipt of cash as a liability of $480,000 because it likely represents an advance payment or unearned revenue that the company has not yet earned by providing goods or services.

How Should Pemco Record the Receipt of Cash on January