Before month$-$end adjustments are made, the December $2023$ trial balance of Entity I contains revenue of $$13,000$ and expenses of $$9,000$ resulting in

income before adjustments of $$4,000.$ Indicate whether the following should be added, subtracted or would have no effect $($NE$)$ in arriving at accrual

basis net income: One$-$third of a customer's $$1,200$ retainer $($the customer paid in advance and Entity I credited the amount to Unearned

Revenue$)$ has now been earned.

Added

Subtracted

NE