On November 1, 2024, a company signs a one-year contract to provide services. The agreement specifies payments of $4,500 to be received at the end of every three months for a total of $18,000 over the entire year ($1,500 per month). No entry is made on November 1, 2024, at the time the contract is signed. The first payment will be received on January 31, 2025. What adjustment does the company need to record at the end of the year on December 31, 2024?
Multiple Choice
Increase Accounts Receivable and increase Service Revenue by $18,000
Decrease Service Revenue and decrease Accounts Receivable by $12,000
Increase Accounts Receivable and increase Service Revenue by $3,000
Increase Accounts Receivable and increase Service Revenue by $15,000