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

question 7

Multiple Choice

A company received $5,000 for 100 one-year subscriptions on July 1.The journal entry to record this cash receipt would include a ________.The company uses a liability account for revenue received in advance.

• A) credit to Accounts Payable for $5,000
• B) debit to Prepaid Expenses for $5,000
• C) credit to Unearned Revenue for $5,000
• D) debit to Note Payable for $5,000

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Definitions:

Industrial Lathe Sales

Revenue generated from selling industrial lathes, which are machines used to shape metal, wood, or other materials by rotating the workpiece against a cutting tool.

Seasonal Factor

A variable or coefficient that adjusts data to account for predictable seasonal variations in statistics or business metrics.

Exponential Smoothing

A time series forecasting method for univariate data that averages the data in a way that gives less weight to older observations.