Deferred revenue account on the balance sheet

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Reference no: EM13795326

On January 1, a customer paid X company $40,000 in advance for 4 times cleaning services from January to April. Once in each month. At the time of the cash receipt, the $40,000 was recorded as Deferred Revenue. What will be the result of the adjusting entry on January 31?

A. a balance of $10,000 in the Deferred Revenue account on the Balance Sheet

B. revenue of $10,000 reported on the Income Statement

Reference no: EM13795326

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