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