A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. When the company mails the first quarterly journal to customers, it should record:
A. Debit Unearned Revenue $45,000; credit Cash $45,000.
B. Debit Prepaid Subscriptions $11,250, credit Sales $11,250.
C. Debit Unearned Revenue $11,250, credit Sales $11,250.
D. Debit Cash $11,250, credit Sales $11,250.
E. Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750.
Answer: C
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