On November 1, 2021, a company receives cash of $6,000 from a customer for services to be provided evenly over the next six months. Deferred revenue is recorded at that time. Which of the following adjusting entries is needed on December 31, 2021? a. Debit Deferred Revenue for $2,000; Credit Cash for $2,000. b. Debit Deferred Revenue for $2,000; Credit Service Revenue for $2,000. c. Debit Deferred Revenue for $6,000; Credit Service Revenue for $6,000. d. Debit Service Revenue for $2,000; Credit Deferred Revenue for $4,000.

Question

On November 1, 2021, a company receives cash of $6,000 from a customer for services to be provided evenly over the next six months. Deferred revenue is recorded at that time. Which of the following adjusting entries is needed on December 31, 2021?
a. Debit Deferred Revenue for $2,000; Credit Cash for $2,000.
b. Debit Deferred Revenue for $2,000; Credit Service Revenue for $2,000.
c. Debit Deferred Revenue for $6,000; Credit Service Revenue for $6,000.
d. Debit Service Revenue for $2,000; Credit Deferred Revenue for $4,000.

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