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Answer the following question: GFM Inc. has a December 31 year and records annually adjusting...

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Accounting

Answer the following question:

GFM Inc. has a December 31 year and records annually adjusting entries. On November 1 the company received a cash deposit of $4,320 from a customer in return for services to be provided evenly over the upcoming 9 months, starting immediately. The company record the entry appropriately.

Which one of the following entries should the company record?

a) At the end record a Dr. to Deferred Revenue and a Cr. to Service Revenue for $960.

b) At year end record a Dr. to Cash and a Cr. to Service Revenue for $960.

c) On November 1 record a Dr. to Cash and a Cr. to Service Revenue of $4,320.

d) At year end record a Dr. to Deferred Revenue and a Cr. to Service Revenue for $3,360.

e) At the year end record a Dr. to Cash and a Cr. to Service Revenue for $3,360.

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