Question: On November 1 , 2 0 X 3 , your calendar year company receives $ 4 0 , 0 0 0 for space it issubletting

On November 1,20X3, your calendar year company receives $40,000 for space it issubletting for 5 months at $8,000 a month, from November 1,20X3 through March 31,20X4, and books the amount as Rent Revenue. On December 31,20X3, you discover thefollowing adjusting entry:Rent Revenue 32,000Rent Received in Advance 32,000To correct this error you must:a. debit Rent Revenue and credit Rent Received in Advance for $8,000b. debit Rent Received in Advance and credit Rent Revenue for $8,000c. debit Rent Revenue and credit Rent Received in Advance for $16,000d. debit Rent Received in Advance and credit Rent Revenue for $16,000

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