New Age Computers Manufactures and Sells Pagers and Radio Paging

New Age Computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects.It also sells an extended warranty which provides an additional two years of protection.On May 10, it sold a paging system for $3,850 and an extended warranty for another $1,200.The journal entry to record this transaction would include

A) a credit to Service Revenue of $5,050.
B) a credit to Service Revenue of $1,200
C) a credit to Sales of $3,850 and a credit to Service Revenue of $1,200
D) a credit to Unearned Service Revenue of $1,200.