On May 1, Sellers Marketing Company Received $1,500 from Franco

Multiple Choice

On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a marketing campaign effective from May 1 this year to April 30 of the following year. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the fees had been earned. Assuming adjustments are only made at year-end, the adjusting entry on December 31 would be:

A) A debit to Fees Earned and a credit to Cash for $1,000.
B) A debit to Unearned Fees and a credit to Cash for $500.
C) A debit to Unearned Fees and a credit to Fees Earned for $1,000.
D) A debit to Fees Earned and a credit to Cash for $500.
E) A debit to Fees Earned and a credit to Unearned Fees for $500.