On January 1, Five Star Corp collected $5,760 for six months rent in advance from a tenant renting an apartment. Five Star Corp prepares monthly financial statements. Which of the following describes the required adjusting entry on January 31?

-Decrease revenue for $960 and increase liabilities for $960.

-Decrease liabilities for $4,800 and increase cash assets for $4,800.

-Increase cash assets for $5,760 and increase revenue for $5,760.

-Decrease liabilities for $960 and increase revenue for $960.