On May 1, Carter Advertising Company Received $3,600 from Kaitlyn

Multiple Choice

On May 1, Carter Advertising Company received $3,600 from Kaitlyn Breanna for advertising services to be completed April 30 of the following year. The Cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31, Year 2 would include:

A) a debit to Earned Fees for $3,600.
B) a debit to Unearned Fees for $1,200.
C) a credit to Unearned Fees for $1,200.
D) a debit to Earned Fees for $2,400.
E) a credit Earned Fees for $2,400.