On June 1, 2017 Baker received an advance payment of $24000 from a customer. The payment was six months of services Baker would perform for the customer at the rate of $4000 per month. Baker started providing the service on June 1 2017

On June 1 2017 Baker made the following entry to record the receipt of the advance payment.

Cash 24000

Unearned Revenue. 24000

At the end of June, and at the end of July, Baker made the correct adjusting entries related to this advance payment.

SELECT THE AUGUST 31 2017 ADJUSTING ENTRY BAKER SHOULD MAKE RELATED TO THIS ADVANCE PAYMENT

A UNEARNED REVENUE 12000

SERVICE REVENUE 12000

B SERVICE REVENUE 4000

UNEARNED REVENUE. 4000

C UNEARNED REVENUE 4000

SERVICE REVENUE 4000

D SERVICE REVENUE 12000

UNEARNED REVENUE. 12000

E none of the above