Madson Company typically sells subscriptions on an annual basis and publishes six times a year.The magazine sells 90000 subscriptions in January at $10 each.Recording the sale of the subscriptions involves a(n)

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When customers pay for an annual subscription upfront, it is recorded as unearned subscription revenue initially as the company has not yet delivered the magazines. When the magazines are published and delivered, the unearned revenue is recognized as subscription revenue. Therefore, the sale of 90000 subscriptions in January at $10 each will result in an increase to Cash (as money has been received), and an increase to Unearned Subscription Revenue (as the magazines have not yet been delivered). The total amount recorded will be $900000. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they do not accurately reflect the revenue recognition principles of subscription-based businesses.

Madson Company Typically Sells Subscriptions on an Annual Basis and Publishes