On April 1 of the current year, Wood Services received $15,000 for services to be performed evenly over the next 12 months. Wood Services initially recorded the $15,000 as service revenue. The adjusting entry on December 31 of the current year will include a:
A) debit to service revenue for $11,250.
B) debit to service revenue for $3,750.
C) debit to unearned service revenue for $3,750.
D) credit to unearned service revenue for $11,250.
Correct Answer:
Verified
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