McCloud Realty Company Ltd Received a Cheque for $21,000 on 1

McCloud Realty Company Ltd received a cheque for $21,000 on 1 July, which represents six months' rent received in advance. Revenue received in advance account was credited with $21,000. Financial statements will be prepared on 31 July. McCloud Realty Company Ltd should make the following adjusting entry on 31 July:

A) Debit Revenue received in advance, $3,500; Credit Rental revenue, $3,500.
B) Debit Rental revenue, $3,500; Credit Revenue received in advance, $3,500.
C) Debit Revenue received in advance, $21,000; Credit Rental revenue, $21,000.
D) Debit Cash, $21,000; Credit Rental revenue, $21,000.