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:

Fight-Or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.

Epinephrine

A neurotransmitter in the brain and also a hormone that is released by the adrenal gland as part of the body’s response to stress; also called adrenaline.

Dopamine

A neurotransmitter involved in reward, motivation, and the regulation of mood and movement.

Reward

A benefit, often in the form of material or social gain, given in response to an individual's behavior or performance.