Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year.The magazine sells 60,000 subscriptions in January at $15 each.What entry is made in January to record the sale of the subscriptions?

Question

Quizplus · Accepted Answer

The entry to record the sale of 60,000 subscriptions at $15 each would be a debit to Cash for $900,000 (60,000 x $15) and a credit to Unearned Revenue for the same amount. Therefore, option B is the correct entry. Option A has an incorrect amount for the credit, option C has a debit to Sales instead of Cash, and option D has an incorrect amount for the debit.

Pickett Company Typically Sells Subscriptions on an Annual Basis, and Publishes