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On February 28, 2021, Rhea received $4,500 cash from a customer for services to be provided evenly over the next 12 months beginning on March 1, 2021 and deferred service revenue was credited for the full amount. Assuming Rhea prepares annual financial statements, what is the adjusting entry required for this transaction on June 30, 2021, its fiscal year end?

Q&A Education