PrimeFlix sells one-year online subscriptions for viewing classic movies. Customers are required to pay for the subscription at the beginning of the subscription period. On April 1, 2021, total sales of one-year subscriptions are $12,000. What adjusting entry does PrimeFlix need to record on December 31, 2021?

A. Debit Deferred Revenue and credit Service Revenue for $12,000.
B. Debit Service Revenue and credit Deferred Revenue for $9,000.
C. Debit Deferred Revenue and credit Service Revenue for $9,000.
D. Debit Service Revenue and credit Deferred Revenue for $12,000.


Answer: C

Business

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