A Company Has Advance Subscription Sales Totaling $45,000 for Four

A company has advance subscription sales totaling $45,000 for four quarterly journals that will mailed to customers in the upcoming year. When the company mails the first quarterly journal to customers, it should record:

A) Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750.
B) Debit Unearned Revenue $45,000; credit Cash $45,000.
C) Debit Cash $11,250, credit Sales $11,250.
D) Debit Unearned Revenue $11,250, credit Sales $11,250.
E) Debit Prepaid Subscriptions $11,250, credit Sales $11,250.

Correct Answer:

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