Each year, Blue Mountain Enterprises (BME) prepares a reconciliation schedule that compares its income statement with its statement of cash flows on both the direct and indirect method bases. In its 2024 income statement, BME reported $695,000 for service revenue from membership fees. BME received $681,000 cash in advance from members during 2024. In its reconciliation schedule, BME should show a $14,000:

Multiple Choice positive adjustment to net income under the indirect method for the increase in deferred revenue.

negative adjustment to net income under the indirect method for the increase in deferred revenue.

negative adjustment to net income under the indirect method for the decrease in deferred revenue.

positive adjustment to