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On 12/31/24, the Cheboygan Company collected $4,000 of Unearned Revenue and recorded the entire amount as Revenue. The earning covered the period 1/1/25 to 12/31/29,
On 12/31/24, the Cheboygan Company collected $4,000 of Unearned Revenue and recorded the entire amount as Revenue. The earning covered the period 1/1/25 to 12/31/29, on a straight-line basis. The error was discovered on 1/10/28; the 2027 books are still open. The correcting journal entry will include what entry to 1/1/27 Retained Earnings?
Select one:
a.$2,000 debit
b.$1,600 credit
c.$2,400 credit
d.$2,400 debit
e.$1,600 debit
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