John and his friend have successfully brought in a new client for the decorating business. The first order from
the new client is placed on that day September 15 for a party that takes place October 2-4. The client pays a deposit of $500 on the date of the order, and the remaining balance is billed to the client when the event is done and due within 15 days from billing.
Bright Home pays its staff healthy bonuses on a quarterly basis for each new client brought in. The company policy is that the bonus will be accrued at the end of the first month during which revenue was recognized from the new client. The bonus will be paid at the end of the quarter.
For this new client, John and his friend will each receive a $100 bonus.
What is the journal entry that should be recorded to accrue for this bonus?
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