Brown Management received a check for $24,000 on July 1, which represents a 12-month advance payment of rent on a restaurant it rents to a client.Unearned Rent was credited for the full $24,000.Financial statements will be prepared on July 31.Brown Management should make the following adjusting entry on July 31:
A) Debit Unearned Rent, $2,000; Credit Rent Revenue, $2,000.
B) Debit Rent Revenue, $2,000; Credit Unearned Rent, $2,000.
C) Debit Unearned Rent, $12,000; Credit Rent Revenue, $12,000.
D) Debit Cash, $12,000; Credit Rent Revenue, $12,000.
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