On November 1, 2024, the company received $7,200 in cash from a customer requesting a custom design for six identical bikes ($1,200 each). The entire amount is recorded in deferred revenue on November 1. By the end of the year, four of the bikes have been completed. Prepare the adjusting entry at December 31.
a) Debit Deferred Revenue $4,800; Credit Revenue $4,800
b) Debit Deferred Revenue $1,200; Credit Revenue $1,200
c) Debit Cash $4,800; Credit Deferred Revenue $4,800
d) Debit Revenue $1,200; Credit Deferred Revenue $1,200