A customer paid $60000 to Foley Marketing on December 30 2018 to perform services from January 1 2019 through December 31 2022.If Foley fails to record the revenue recognized ________ would be understated by ________ each year.

Question

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The total payment of $60000 is for services over 4 years, so $15000 should be recognized as revenue each year. If Foley fails to record this, net income would be understated by $15000 annually.

A Customer Paid $60000 to Foley Marketing on December 30