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Financial Accounting

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Using Credits

FINACT-1N8V5K

Johnson Company is in the business of painting residential homes. Its policy regarding work for all new clients is to require a 50% down payment at the time the contract is executed. If Johnson receives \$2,500 from William Avery on September 1st for work to be started and completed on September 15th, which of the following accounts should Johnson credit (CR) on September 1st?

A

Cash

B

Service Revenue

C

Unearned Revenue

D

Retained earnings