Ove is a lawyer who requires that his clients pay him in advance of legal services rendered. Ove routinely credits Legal Fee Revenue when his clients pay him in advance. In June, Ove collected $16,000 in advance fees and completed 75% of the work related to these fees. Assume the alternative method is used. What adjusting entry is required by Ove's firm at the end of June?

Question 3 options:

DR Unearned Revenue $12,000 and CR Legal Fee Revenue $12,000

DR Unearned Revenue $4,000 and CR Legal Fee Revenue $4,000

DR Cash $16,000 and CR Legal Fee Revenue $16,000

DR Legal Fee Revenue $4,000 and CR Unearned Revenue $4,000