Question

on january 1, roberts company receives $36,000 in cash for providing internet access to customers for the upcoming year. on january 1, roberts should debit cash and credit multiple choice question. deferred revenue for $33,000. service revenue for $33,000. service revenue for $36,000. deferred revenue for $36,000.

Answer 1

On January 1, Robert's company should debit cash and credit deferred revenue for $36,000.

Step-by-step explanation:

This is because the company has received cash in advance for providing internet access to customers for the upcoming year, but the service has not yet been provided. Therefore, the cash received should be recorded as a liability (deferred revenue) until the service is provided. Once the service is provided, the deferred revenue will be recognized as service revenue.