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

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.The adjusting entry on December 31 would be:

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