Question

Nationwide magazine sells 60,000 subscriptions in march at $15 each. the entry is made in march to record the sale of the subscriptions would include a:

Answer 1

the entry is made in march to record the sale of the subscriptions would include a: Credit to unearned subscription revenue for $900,000

in subscription business model, the customers could pay the subscription within a large time period and it would be impossible to predict the exact date when the revenue should be recorded. Therefore, we should recorded is as 'unearned revenue