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Problem - Customer Deposits - Wolfe & Wolfe collected $9,000 from a customer on April 1 and agreed to provide legal services during the next three months. Wolfe & Wolfe expects to provide an equal amount of services each month.
Required -
1. Prepare the journal entry for the receipt of the customer deposit on April 1.
2. Prepare the adjusting entry on April 30.
3. What will be the effect on net income for April if the entry in (2) is not recorded?
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