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All Sports Company Publishes a Monthly Magazine

Question 80

Essay

All Sports Company publishes a monthly magazine. Subscriptions to the magazine cost $20 per year. During November 2012, All Sports sells 15,000 subscriptions beginning with the December issue.
Required:
a. Prepare the entry in November to record the receipt of the subscriptions.
b. Prepare the adjusting entry at December 31, 2012.

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