8 pt On January 1, one of X Company\'s customers paid $25,200 in advance for cle

Question

8 pt On January 1, one of X Company's customers paid $25,200 in advance for cleaning services. The cleaning was going to be done once in January, once in February, once in March, and once in April. At the time of the cash receipt, the $25,200 was recorded as Deferred Revenue. What will be the result of the adjusting entry on January 31? 11.AO a $6,300 decrease in the Cash account on the Balance Sheet BO revenue of $6,300 reported on the Income Statement CO a balance of $6,300 in the Deferred Revenue account on the Balance Sheet DO a S6,300 decrease in the Retained Earnings account on the Balance Sheet EO a $6,300 increase in the Cash account on the Balance Sheet FO a $6,300 increase in the Deferred Revenue account on the Balance Sheet

Explanation / Answer

Revenue of $6300 reported on the income statement (25200/4) Option B is correct

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