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Powers Rental Service had the following items that require adjustment at year end.
a. Earned $9,880 of revenue from the rental of equipment for which the customer had not yet paid.
b. Interest of $650 on a note receivable has been earned but not yet received.
Required:
1. Prepare the adjusting entries needed at December 31.
2. What is the effect on the? financial statements if these adjusting entries are not made?
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