Nick Co$.$ is a firm that provides legal services. On September $15,$ a client pays $$2,000$ upfront to Nick Co$.$ for legal services to be performed over the next month. Nick Co$.$ will start providing legal services immediately. What is the adjusting journal entry at the end of September?

Dr$.$ Unearned Revenue $1,000$ Cr$.$ Service Revenue $1,000$

Dr$.$ Cash $1,000$ Cr$.$ Service Revenue $1,000$

Dr$.$ Accounts Receivable $1,000$ Cr$.$ Service Revenue $1,000$

Dr$.$ Service Revenue $1,000$ Cr$.$ Unearned Revenue $1,000$

Hint: This transaction is an adjusting journal entry that comes from Ch$.3.$

Review the Ch$.3$ slides in the Deferred

Revenue$/$Unearned section to see an example.