#5

Binge Corporation is an on-demand video subscription company that only adjusts its accounts at year-end. On October 15, 2020, the company sold 100 one-year subscriptions at $120 each. The subscriptions began on November 1, 2020. When Binge Corporation received the $12,000 cash on October 15, they credited Subscriptions Payable (aka Unearned Revenue) and debited Cash. What is the adjusting journal entry on 12/31/2020? Subscriptions Payable $2,000 Streaming Inventory $2,000 No entry needed because this is a service company and people can stream as much as they want a day. Subscriptions Payable $ 12,000 Revenue $12,000 Subscriptions Payable $2,000 Revenue $2,000