On October 1, a company received $3,600 for services to be performed over the next 6 months, with an equal amount of work to be completed each month. If no adjusting entry is made on December 31,

Select one:

a. net income will be understated by $3,600

b. net income will be understated by $1,800

c. net income will be overstated by $1,800

d. net income will be overstated by $3,600

e. net income will be understated by $2,400