The customers advance may provide for revenue that will be earned over several future accounting periods. Suppose

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The customer’s advance may provide for revenue that will be earned over several future accounting periods. Suppose in 2011 a publisher received $100 for a magazine subscription, with the magazines to be delivered in 2012 and 2013. The entry for 2011 should be:image text in transcribed

The amount of the liability at the end of 2011 would be [$100 / $50 /
$25 / $0].

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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