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