In December 2017,Quebecor Printing received magazine subscriptions for 2018 from a customer,who paid $500 in cash.What would be the appropriate journal entry for this event?

Question

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The correct journal entry is to debit Cash for $500, recognizing the increase in cash, and credit Deferred Revenue for $500, as the service (magazine subscriptions) has not yet been provided. This is an example of unearned revenue, which is recorded as a liability until the service is delivered.

In December 2017,Quebecor Printing Received Magazine Subscriptions for 2018 from a Customer,who