Aneen’s Video Mart sells one- and two-year mail-order subscriptions for its video-of-themonth business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following:
Required:
What amount of unearned subscription revenue should Aneen report on its December 31, 2008, balance sheet?

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2007 2008 Sales $420,000 $500,000 Less cancellations (20,000) (30,000) Net sales $400,000 $470,000 Subscription expirations 2007 $120,000 2008 155,000 $130,000 2009 125,000 200,000 2010 140,000 $400,000 $470,000