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Mallon University operates three? 10-week semesters, beginning September? 1, December? 1, and March 1

Accounting

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Mallon University operates three? 10-week semesters, beginning September? 1, December? 1, and March 1.? For financial reporting?purposes, Mallon reports on a? calendar-year basis. The? school's policy is that for every tuition dollar? received, 50% is recognized as revenue one month into the? semester, 25% is recognized after two? months, and the last? 25% is recognized at the end of the semester. Mallon receives? $150,000 in cash for each? semester, with full payment received on the first day of each semester. The journal entry for year 1 will include which of the following debits or? credits?

A

Debit to cash of? $225,000.

B.

Credit to deferred revenue of? $150,000.

C.

Credit to revenue of? $225,000.

D.

Debit to deferred revenue of? $75,000.

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