On July 7, Saints Incorporated received $10,000 in cash from a customer for services to be provided on October 10. Which of the following describes how the transaction should be recorded on July 7?

A) Debit Cash $10,000, credit Service Revenue $10,000.

B) Debit Accounts Receivable $10,000, credit Service Revenue $10,000.

C) Debit Cash $10,000, credit Deferred Revenue $10,000.

D) Debit Deferred Revenue $10,000, credit Cash $10,000.

Answer: C