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Problem 1: A firm sells medical equipment along with an agreement to provide supplies for a lengthy time. On the day of the transaction, the firm delivers all of the equipment in exchange for the customer's promise to pay in the future. The firm determines that on the day of the sale, the customer owes them $5,000 and the equipment should be allocated 60% of the contract price. Which of the following entries is most likely to record the sale? Option 1: Debit accounts receivable $3,000, debit deferred revenue $2,000, credit revenue $5,000 Option 2: Debit accounts receivable $5,000, credit deferred revenue $3,000, credit revenue $2,000 Option 3: Debit accounts receivable $2,000, debit deferred revenue $3,000, credit revenue $5,000 Option 4: Debit accounts receivable $5,000, credit deferred revenue $2,000, credit revenue $3,000
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