Nationwide Magazine sells 63,000 subscriptions on account in March. The subscription price is $14 each. The subscriptions start in April. The journal entry in March would include a:
A)debit to Unearned Subscription Revenue for $882,000.
B)debit to prepaid subscriptions for $882,000.
C)credit to Cash for $882,000.
D)credit to Unearned Subscription Revenue for $882,000.

Question

Quizplus · Accepted Answer

The journal entry in March would include a credit to Unearned Subscription Revenue for $882,000 because the revenue is not yet earned; it will be recognized over the subscription period starting in April.

Nationwide Magazine Sells 63,000 Subscriptions on Account in March