Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.)
-Insurance is earned in the current period, although collections from customers had been received in a previous period

Question

Quizplus · Accepted Answer

When collections from customers are received in advance for services that are provided in the future, it is considered unearned or deferred revenue. A adjusting entry is required to recognize the revenue that has been earned during the current period.

Match the Following Types of Adjusting Entries to the Listed