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

question 377

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.Assuming adjustments are only made at year-end,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.

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Definitions:

Multi-Stage Model

A conceptual framework that describes a process or phenomenon as occurring in distinct phases or stages over time.

Reaction

The process of responding to internal or external stimuli, which can involve physical, emotional, or intellectual responses.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, hence avoiding dealing with painful feelings.

Learning Organization

Describes an organization that facilitates the learning of its members and continuously transforms itself to better respond to changes in the environment.