Here are some financial records for Accounting Plus Magazine which started operations in October 2012. Sales for its first month were as follows: What would be the subscription revenue to be recognized for the month of Oct 2012? (Round to the nearest dollar).
A)$68,333
B)$107,667
C)$774,333
D)$882,000

Question

Here are some financial records for Accounting Plus Magazine which started operations in October 2012. Sales for its first month were as follows:  What would be the subscription revenue to be recognized for the month of Oct 2012? (Round to the nearest dollar).
A)$68,333 
B)$107,667 
C)$774,333 
D)$882,000

Quizplus · Accepted Answer

The subscription revenue to be recognized for the month of Oct 2012 is the total sales for the month, which is $120,000 minus the unearned revenue at the end of the month, which is $12,333. Therefore, the subscription revenue to be recognized is $107,667 (rounded to the nearest dollar).

Here Are Some Financial Records for Accounting Plus Magazine Which