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.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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