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Problem 1: On January 1, 2020, Dell Computer sell a three-year extended warranty for $300. On January 1, they make the following journal entry: Dr. Cash 300 and Cr. Unearned Revenue 300. If Dell records any revenue earned on the extended warranty as an adjusting entry at the end of the year, what adjusting journal entry will Dell make on December 31, 2020?
Option 1: Dr. Unearned Revenue 200 and Cr. Sales 200
Option 2: Dr. Unearned Revenue 100 and Cr. Sales 100
Option 3: Dr. Unearned Revenue 300 and Cr. Sales 300
Option 4: Dr. Unearned Revenue 100 and Cr. Cash 100
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