1. CNC News Inc. sells one-year newspaper subscriptions for $72 cash each. Newspapers are delivered daily. The average cost of producing and delivering papers each month is $3 paid in cash at the time of delivery. CNCs sales activity for the year follows:

• On January 1, CNC sold 8,000 subscriptions.
• On February 1, CNC sold 6,000 subscriptions.
• On August 1, CNC sold 9,000 subscriptions.
• On December 1, CNC sold 12,000 subscriptions.

1. Prepare journal entries to record the subscription sales during the year.
2. Prepare journal entries to record the revenue earned during the year and the related expense.