On January 1, 2017, Fryer Company enters into a contract to supply 600 pastry frying machines to aregional donut retailer. The machines will be delivered at a rate of 25 machines per month over 2years at a transaction price of $1,000 per machine. The salesperson received a $36,000 salescommission on the date the contract was signed. The journal entry to record the transaction onJanuary 1 will include a
a.debit Prepaid Sales Commissions for $36,000.b.debit Sales Commission Expense for $36,000.c.credit Sales Revenue $600,000.d.credit Sales Revenue $564,000.