Revaluation Magazine receives $90 in advance from a customer for a 3-year subscription.Revaluation Magazine's entry to record this transaction would include:

Question

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When a company receives payment in advance for a subscription, it is recorded as Unearned Subscription Revenue. This is because the revenue has not yet been earned since the subscription has not yet begun. Therefore, the appropriate entry would be to credit Unearned Subscription Revenue for the amount received, which in this case is $90.

Revaluation Magazine Receives $90 in Advance from a Customer for a 3-Year