On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 220,000 over the next 8 months. SQU paid 55% of the amount on August 31, 2020 and will pay the remaining amount during January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the adjusting entry recorded on that date would include: O a. Increase in Accounts Receivable for RO 220,000. Ob. Increase in Service Revenue for RO 99,000. Oc. Increase in Cash for RO 79,200. O d. None of the options are correct. O e. Decrease in Unearned Revenue for RO 220,000.
On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 220,000 over the next 8 months. SQU paid 55% of the amount on August 31, 2020 and will pay the remaining amount during January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the adjusting entry recorded on that date would include: O a. Increase in Accounts Receivable for RO 220,000. Ob. Increase in Service Revenue for RO 99,000. Oc. Increase in Cash for RO 79,200. O d. None of the options are correct. O e. Decrease in Unearned Revenue for RO 220,000.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 220,000 over the
next 8 months. SQU paid 55% of the amount on August 31, 2020 and will pay the remaining amount
during January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the
adjusting entry recorded on that date would include:
Oa.
Increase in Accounts Receivable for RO 220,000,
O b. Increase in Service Revenue for RO 99,000.
O. Increase in Cash for RO 79,200.
O d. None of the options are correct.
O e. Decrease in Unearned Revenue for RO 220,000.
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