Answer:
Boston Magazine should record revenue when the magazines are delivered to the subscribers
Boston Magazine should record $28 for seven issues
Explanation:
Revenue should recognized when earned and not when it is received.It is earned when the seller fulfills his obligation by delivering the promised good or service to the buyer.
Hence, the revenue received in advance should be credited to revenue received in advance account until it is earned
The cost per issue of magazine is $4 ($120/30),so as a result,seven issues would be $28($4*7)
The double to record the seven issues is as follows:
Dr Revenue in advance $28
Cr Revenue $28
Henceforth,the value of magazines delivered each is debited to revenue in advance and credited to revenue to show the amount of revenue earned each month
