Answer:
The company should record it as unearned revenue.
Explanation:
Unearned revenue is the one which is received but services are not rendered. The cash has been received but the service is yet to be delivered. The financial transaction is recorded as prepayment or unearned revenue in the financial statements. When the services are rendered and the contract is completed an adjusting entry is made to record the final transaction. In the given scenario $5570 fee of the project has been received in advance and the company is recording remodeling fees earned. This should be recorded as unearned revenue till the services are completed.
Answer: try reading the story first dude then comeback when you struggle with one question or two, but not the whole homework assignment. also it'll be easier if you attach a PDF file of the letter that way it's easier to understand the way the questions and answer choices are formatted.
Explanation:
don't be lazy :)
