Mohling Company Typically Sells Subscriptions on an Annual Basis, and Publishes

Multiple Choice

Mohling Company typically sells subscriptions on an annual basis, and publishes eight times a year. The magazine sells 45,000 subscriptions in January at $10 each. What entry is made in January to record the sale of the subscriptions?

A) Subscriptions Receivable 450,000 Subscription Revenue 450,000
B) Cash 450,000 Unearned Subscription Revenue 450,000
C) Subscriptions Receivable 56,250 Unearned Subscription Revenue 56,250
D) Prepaid Subscriptions 450,000 Cash 450,000