If a Company Has Advance Subscription Sales Totaling $45,000 for Four

question 142

Multiple Choice

If a company has advance subscription sales totaling $45,000 for four quarterly journals that will mailed to customers in the upcoming year, the receipt of cash would be journalized as:

• A)Debit Cash $45,000; credit Unearned Revenue $45,000.
• B)Debit Unearned Revenue $45,000; credit Sales $45,000.
• C)Debit Cash $45,000, credit Sales $45,000.
• D)Debit Sales $45,000, credit Unearned Revenue $45,000.
• E)Debit Prepaid Subscriptions $45,000, credit Sales $45,000.

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Definitions:

Intensity

The amount of energy in a light or sound wave, which we perceive as brightness or loudness, as determined by the wave’s amplitude.

Myelin Sheath

A fatty layer that surrounds nerve fibers and enhances the speed of electrical signal transmission in the nervous system.

Neural Transmission

The process by which nerve cells communicate with each other through electrical and chemical signals.

Positive Ions

Atoms or molecules that have lost one or more electrons, resulting in a net positive charge.