Nationwide Magazine sells 60,000 subscriptions on account in March.The subscription price is $15 each.The subscriptions start in April.The journal entry in March would include a:

Question

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When subscriptions are sold, the revenue received is initially recorded as unearned subscription revenue because the magazine has not yet been delivered. Therefore, the journal entry in March would include a credit to Unearned Subscription Revenue for $900,000, representing the amount received for the 60,000 subscriptions sold, even though the subscriptions will not begin until April.

Nationwide Magazine Sells 60,000 Subscriptions on Account in March