Answer:
cash 43,200
unearned services 43,200
to reord payment in advance
account receivables 388,800
unearned services 43,200
service revenue 432,000
to record completion of diodes request of December 12th
Explanation:
the accounting will match revenues with the time at they occur.
Also it will follow conservatism principles and do not recognize revenue until is secure.
Because, the customer may cancel the request it will not recognize any revenue until the goods are delviered andaccepted from the customer.
That occurs on January 16th so hthe revenue will be in that entry.
For Deceber 12th the reception of cash will be against unearned revenue as on that date, the company takes the obligation to do the job.
