Solution: Deferred revenues of $24,000 were received and properly recorded and entered in the ledger of the company. At the end of the accounting period, one-fourth of the deferred revenue had been earned, but

Problem

Deferred revenues of $24,000 were received and properly recorded and entered in the ledger of the company. At the end of the accounting period, one-fourth of the deferred revenue had been earned, but unrecorded. The adjusting entry will require a:

A) a debit to Unearned Revenues and a credit to Revenues for $6,000.

B) a debit to Unearned Revenues and a credit to Cash for $6,000.

C) a debit to Unearned Revenues and a credit to Accounts Payable for $6,000.

D) a debit to Cash and credit to Revenues for $6,000.