Netflix, Inc. is analyzing its revenue recognition for subscription services for the quarter. The

following data is provided:

● Total Subscriber Base: 1,000,000

● Monthly Subscription Fee: $10

● Percentage of Monthly Subscribers Canceling: 5%

● Percentage of Annual Subscribers Canceling: 10%

● Average Monthly Subscription Duration: 12 months

a) Calculate the Monthly Subscription Revenue Recognized. b) Determine the Annual

Subscription Revenue Recognized. c) Compute the Total Revenue Recognized. d) Analyze the

Impact on Deferred Revenue. e) Evaluate Subscription Service Revenue Recognition Policies.