Chase Company rents space to a tenant for $4,000 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is:Debit Rent Receivable, $7,400; credit Rent Earned, $7,400.

Debit Unearned Rent, $7,400; credit Rent Earned, $7,400.

Debit Unearned Rent, $3,700; credit Rent Earned, $3,700.

Debit Rent Receivable, $3,700; credit Rent Earned, $3,700.

Debit Rent Receivable, $11,100; credit Rent Earned, $11,100.

Debit Rent Receivable, $7,400; credit Rent Earned, $7,400.

Explanation:

As $3,700 is the revenue for Chase Company and accrued revenue is recorded in the receivable account. The rent for November and December is accrued and did not received by Chase Company. On December 31 the adjusting entry for the two month expense will be recorded as follow

Dr. Rent Receivable ($3700 x 2) $7,400

Cr. Rent Earned $7,400

Note:

According to given data in the question the options are inconsistent with the question. Following answer is made according to given data.

As $4,000 is the revenue for Chase Company and accrued revenue is recorded in the receivable account. The rent for November and December is accrued and did not received by Chase Company. On December 31 the adjusting entry for the two month expense will be recorded as follow

Dr. Rent Receivable ($4000 x 2) $8,000

Cr. Rent Earned $8,000