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Southwestt Magazine sells subscriptions for $252 for 36 issues. The company collects cash in advance and then mails out the magazines to subscribers each month.

Southwestt Magazine sells subscriptions for $252 for 36 issues. The company collects cash in advance and then mails out the magazines to subscribers each month.

Apply the revenue recognition principle to determine

a. when Southwest Magazine should record revenue for this situation.

b. the amount of revenue Southwest Magazine should record for three issues.

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