On November 1, 2020, J&J Inc. received $12,000 from a customer for services to be performed evenly over the period November 1, 2020 January 31, 2021. What adjusting entry should J&J record on December 31, 2020? Assume that no other adjusting entries have been recorded yet this year.

Multiple Choice

• dr. Cash: 12,000

  cr. Service revenue: 12,000

• dr. Service revenue: 12,000

  cr. Cash: 12,000

• dr. Deferred service revenue: 8,000

  cr. Service revenue: 8000

• dr. Cash: 8,000

  cr. Deferred service revenue: 8.000