A Company Received $5,000 for 100 One-Year Subscriptions on July

question 45

Essay

A company received $5,000 for 100 one-year subscriptions on July 1.The journal entry to record this cash receipt would include a:
A) debit to Unearned revenue.
B) debit to Prepaid expenses.
C) credit to Unearned revenue.
D) credit to Cash.

• A) debit to Unearned revenue.
• B) debit to Prepaid expenses.
• C) credit to Unearned revenue.
• D) credit to Cash.

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Definitions:

Maximize Profits

Refers to strategies or actions taken by businesses to increase their net earnings and return on investment.

Wheat

A cereal grain that is a major food staple worldwide, used for making flour, bread, and other products.

Bushels

A unit of volume that is used for measuring quantities of grain or other dry commodities.

Price Range

The difference between the highest and lowest selling price of a good or service in a given market over a certain period of time.