On December 1, 2021, Wolverine receives $3,600 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue. Record the adjusting entry for deferred revenue at its year-end of December 31.

The adjusting entry is as follows:

Debit Deferred Revenue $1800

Credit Rent Revenue $1800

Explanation: In this scenario, it says that $3600 cash has been received for Dec and Jan. As of yet, the company has not yet earned the revenue.
On Dec 31, the company would have earned the revenue. Thus, we would debit deferred revenue and credit rent revenue of $1800, since 1/2 if that amount has been earned.

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