If the balance in the unearned sales account decreased during the year, the best explanation for the adjustment made when converting from cash basis net income to accrual basis net income is which of the following?

Group of answer choices

1 Because this decrease is the result of recognizing a revenue for cash basis but not accrual basis and, therefore, this decrease is required to be subtracted from cash basis net income to find accrual basis net income.

2 Because this decrease is the result of recognizing a revenue for cash basis but not accrual basis and, therefore, this decrease is required to be added to cash basis net income to find accrual basis net income.

3 The correct answer is not listed.

4 Because this decrease is the result of recognizing a revenue for accrual basis but not cash basis and, therefore, this decrease is required to be added to cash basis net income to find accrual basis net income.

5 Because this decrease is the result of recognizing a revenue for accrual basis but not cash basis and, therefore, this decrease is required to be subtracted from cash basis net income to find accrual basis net income.