At the End of the Accounting Period, the Legal Fees

Multiple Choice

At the end of the accounting period, the Legal Fees Earned account has a normal balance of $75,000. The accountant makes two adjustments--one to accrue unbilled legal fees earned of $2,500, and the other to reduce the Unearned Legal Fees liability account by $500.
After the adjustments are posted, the Legal Fees Earned account has a balance of

A) $77,500
B) $78,000
C) $81,500
D) $82,500
E) None of the above