Question

A magazine company's Unearned Revenue account had a balance of $12,700 on January 1, 2013. On December 31, 2013, as part of the adjusting entry, they recognized Subscription revenue of $14,800. The December 31, 2013 balance of the Unearned Revenue account was $12,300. What must have been the amount of cash received by the magazine company as advance payments from customers during the year 2013

Answer 1

Answer:

The  amount of cash received by the magazine company as advance payments from customers during the year 2013 must have been $14,400.

Explanation:

Let cash received from customers be x :

$12,700 + x - $14,800 = $12,300

                                  x = $14,400

Therefore, The  amount of cash received by the magazine company as advance payments from customers during the year 2013 must have been $14,400.