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

Multiple Choice

A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers.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.