Abt Associates offers a 5% discount if their customers pay upfront for their six month contract. Abt Associates collected $64,000 from customers (which reflects the discounted amount)  on October 25th for services that will be provided evenly over the next six months starting on November 1, 2019.

Record the initial entry and the adjustment needed on December 31, 2019.

Answer rating: 100% (QA)

1 The initial entry which will be made on 25th October will be as ... View the full answer