On September 1, Consulting Company began a contract to provide services to Willowwood Company for six months, with the total $21,600 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. What proper adjusting entry would Consulting Company make on December 31, the end of the accounting period (no previous adjustment has been made)?

Select one:

A.

Unearned Service Fees

14,400

Service Fees Earned

14,400

B.

Fees Receivable

14,400

Service Fees Earned

14,400

C.

Fees Receivable

21,600

	Service Fees Earned		14,400
	Unearned Service Fees		7,200

D.

Cash

14,400

Service Fees Earned

14,400