On December 1, Simpson Marketing Company received $3,600 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:
A. a debit to Unearned Fees for $1,800.
B. a debit to Earned Fees for $3,600.
C. a credit to Earned Fees for $3,600.
D. a credit to Unearned Fees for $1,800.
E. a debit to Earned Fees for $1,800.
Answer: A
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