Friday, October 9, 2020

Summer Leasing received $12,000 from a customer to cover 24 months of rent in advance. How should Summer record this transaction?

Summer Leasing received $12,000 from a customer to cover 24 months of rent in advance. How should Summer record this transaction?


A) Debit Prepaid Rent; credit Rent Expense.

B) Debit Cash; credit Deferred Revenue.

C) Debit Cash; credit Service Revenue.

D) Debit Rent Expense; credit Cash.


Answer: B

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