Smith Co paid $12 thousand on June 1, 2017 for a 2-year subscription and booked everything as subscription expense. The December 31, 2017 adjusting entry is

Select one:

A. debit subscription expense and credit prepaid subscription, $3,500.

B. debit subscription expense and credit prepaid subscription, $8,500.

C. debit prepaid subscription and credit subscription expense, $3,500.

D. debit prepaid subscription and credit subscription expense, $8,500.