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In December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next calendar year. The company collects cash in advance and then downloads the magazines
In December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next calendar year. The company collects cash in advance and then downloads the magazines to subscribers each month. Apply the recognition criteria for revenues to determine (a) when the company should record revenue for this situation and (b) the amount of revenue the company should record for the January-through-March downloads.
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