If a Company Has Advance Subscription Sales Totaling $45,000 for the Upcoming

question 87

Multiple Choice

If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers, the receipt of cash would be journalized as:

• A) Debit Cash $45,000, credit Sales $45,000.
• B) Debit Sales $45,000, credit Unearned Revenue $45,000.
• C) Debit Prepaid Subscriptions $45,000, credit Sales $45,000.
• D) Debit Unearned Revenue $45,000; credit Sales $45,000.
• E) Debit Cash $45,000; credit Unearned Revenue $45,000.

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Definitions:

Church and State

The concept or legal principle concerning the separation of religious institutions and government entities, aiming to prevent any single religion from dominating public policy or government functions.

Indian Lands

Areas of land within the United States that are reserved for Native American tribes and are recognized as such by the federal government.

Massachusetts Bay Colonists

The settlers of the Massachusetts Bay Colony, an English settlement on the east coast of North America in the 17th century.

New England Indians

Indigenous peoples living in the region known as New England, in the northeastern United States, prior to and during European colonization.