21. in december, a law firm properly recorded $5,000 in the account deferred revenues. when the law firm…

21. in december, a law firm properly recorded $5,000 in the account deferred revenues. when the law firm performs 40% of the services in january, which of the following should be recorded in the january adjusting entries? select... a credit to deferred revenues for $2,000 a credit to services revenues for $2,000 a debit to services revenues for $2,000 a debit to deferred revenues for $3,000 plies began the year with a balance of $15,000. iditional $260,000 of marketing supplies which year, the company had $20,000 of marketing ld be included in the year - end adjusting entry?

21. in december, a law firm properly recorded $5,000 in the account deferred revenues. when the law firm performs 40% of the services in january, which of the following should be recorded in the january adjusting entries? select... a credit to deferred revenues for $2,000 a credit to services revenues for $2,000 a debit to services revenues for $2,000 a debit to deferred revenues for $3,000 plies began the year with a balance of $15,000. iditional $260,000 of marketing supplies which year, the company had $20,000 of marketing ld be included in the year - end adjusting entry?

Answer

Brief Explanations:

Deferred revenues are liabilities when received in advance. When services are performed, a portion of deferred revenues is recognized as service revenues. The amount of services performed is 40% of $5,000. So, $5,000×40% = $2,000 of deferred revenues should be recognized as service revenues. This requires a debit to Deferred Revenues and a credit to Services Revenues for $2,000.

Answer:

A credit to Services Revenues for $2,000