Answer :
The amount that has to be recognised as earned revenue can be used to compute the adjusting entry for the unearned rent account.
The balance of $43,118, of which $3,660 is unearned at the end of the accounting period, reflects the earned income. We deduct the unearned fraction ($3,660) from the overall balance of the unearned rent account ($43,118) to arrive at the adjusting entry. Adjusting entry: Unearned part - Total unearned rent Entry adjustment: $43,118 minus $3,660
$39,458 after adjustment Therefore, Oa. $39,458 is the appropriate selection for the adjusting entry's dollar amount.
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