Question
Q. Subscription Revenue Received in Advance $135 200: the entity began selling magazine subscriptions on 1 April 2016 on an annual basis. The selling price
Q. Subscription Revenue Received in Advance $135 200: the entity began selling magazine subscriptions on 1 April 2016 on an annual basis. The selling price of a subscription is $130. A review of subscription contracts reveals the following.
Subscription start date - Number of subscriptions
1 April - 200
1 May - 300
1 June - 540
The annual subscription is for 12 monthly issues. The June magazine for all of the subscriptions had been delivered to the subscribers at 30 June 2016.
- Explain why the business would not recognise the full subscription revenue when the customers sign up for the magazines and pay for the subscription.
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