The president and CEO of TeamSnap discusses how he uses the revenue recognition principal that requires that revenue be recognized in the accounting period that the revenue is earned. Adjusting entries are recorded to make sure that the revenue is earned when it is recognized and that the revenue and expense recognition principles are followed. What type of adjusting entries does TeamSnap record? Unearned revenues, cash that is received before any services are performed. O Accrued expenses, expenses that are incurred but not yet paid in cash or recorded. Prepaid expenses, expenses that are paid before they are used or consumed. Accrued revenues, revenues for services performed but not yet received in cash or recorded. Part 2 Unearned revenue is the revenue that a company receives before services are performed. TeamSnap's revenue mostly comes from their paid subscriptions that they receive from various customers. How is the revenue that they receive from the subscriptions recorded and recognized? The revenue is recorded as a prepaid on the balance sheet since the subscription was paid in advance. O The revenue that is received from the annual subscriptions is amortized and recognized over a 12-month period. The revenue is recorded as earned when the subscriptions are sold. O Since they are on a cash basis, all revenue is recognized when the cash is received. Part 3 The owner of TeamSnap provides a "what if" scenario, of TeamSnap receiving a yearly subscription from hundreds of soccer captains for $1,200 on January 1st. How would TeamSnap record and journalize this receipt of revenue? O They would debit cash and credit unearned revenue for $1,200. They would debit unearned revenue and credit cash for $1,200. O They would record this with a credit to cash and a debit to sales for $1,200. They would debit cash and credit sales revenue for $1.200