Dot Point, Inc. is a retailer of washers and dryers and offers a three-year service contract on each appliance sold. Although Dot Point sells the appliances on an installment basis, all service contracts are cash sales at the time of purchase by the buyer. Collections received for service contracts should be recorded as
A. service revenue.
B. a direct addition to retained earnings.
C. a reduction in installment accounts receivable.
D. deferred service revenue.
intermediate Accounting final examination acc421
Acc421 Acc/421 Acc 421 Final Exam examination
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