Match each transaction with the type of entry that will be required at April 30,the company's year-end.
-The company provides lawn care in April for customers who paid in March.

Question

Quizplus · Accepted Answer

This transaction is a deferral adjusting entry because the company received payment in March (before the services were provided) and needs to recognize the revenue in April when the lawn care services are actually performed. This adjusts the previously recorded liability (unearned revenue) to revenue.

Match Each Transaction with the Type of Entry That Will