Carson Company Sells Sporting Tickets in Advance of the Event

question 203

Multiple Choice

Carson Company sells sporting tickets in advance of the event for $500,000.The journal entry to record the sale is:

• A)Debit Prepaid Sales $500,000; credit Sales Revenue $500,000.
• B)Debit Cash $500,000; credit Accounts Payable $500,000.
• C)Debit Cash $500,000,credit Unearned Ticket Revenue $500,000.
• D)Debit Cost of Sales $500,000,credit Inventory $500,000.
• E)No journal entry is required.

---

Definitions:

Original Price

The original price is the initial selling price of a product or service before any discounts, promotions, or markdowns are applied.

Royalty Rate

The percentage of revenue paid to a creator, author, or inventor for the right to use their intellectual property or product.

Apple iTunes

A media player, media library, Internet radio broadcaster, mobile device management utility, and the client app for the iTunes Store.

Biweekly Pay

A payment system where employees receive wages every two weeks, resulting in 26 pay periods annually.