On October 1 of the current year, a company received $4,800 for services to be performed evenly over the next four months. If no adjusting entry was made on December 31 of the current year:
A) net income would be understated by $4,800.
B) net income would be understated by $3,600.
C) net income would be overstated by $1,200.
D) net income would be overstated by $2,400.
Correct Answer:
Verified
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