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A company's accounting records included the following accounts. Accounts Receivable (A) Prepaid Rent (A) Unearned Revenue (L)
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1. Complete the following sentencse that describes typical effects transactions have on the following accounts.Accounts Transactions Increase and DecreaseAccounts Receivable Sales to customers on account.Accounts Receivable Cash collections from customers.Prepaid Rent Cash payments for rent related to future periods.Prepaid Rent The benefits of these prepayments are used up over time.Unearned Revenue Cash received from customers for goods or services to be provided inthe future.Unearned Revenue Goods and services are provided.
2. Compute the missing amountsBeginning Increase Decrease = EndingAccounts Receivable 324 2,725 = 476Prepaid Rent 54 57 = 56Unearned Revenue 366 342 = 316
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