A restaurant collects cash from customers for gift certificates. Assuming that 100% of the gift certificates are redeemed, the restaurant records the collection of the cash and the delivery of food to customers who redeem their gift certificates as follows (ignore inventory and COGS):

Select one:

a. Collection: increase cash and increase deferred revenue; and redemption: decrease deferred revenue and increase equity (revenue)

b. None of the listed answers

c. Collection: increase cash and increase deferred revenue; and redemption: decrease deferred revenue and decrease equity (revenue)

d. Collection: increase cash and decrease equity (revenue); and redemption: nothing is recorded

e. Collection: increase cash and increase equity (revenue); and redemption: nothing is recorded