Question
WIN.com sells one-year and two-year subscriptions for its electronic book-of-the-month download business. Subscriptions are collected in advance and credited to sales. An analysis of the
WIN.com sells one-year and two-year subscriptions for its electronic book-of-the-month download
business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales
activity revealed the following:
2018 2019
Sales P420,000 P500,000
Less: Cancellations 20,000 30,000
Net Sales 400,000 P470,000
Subscriptions Expirations:
2018 P120,000
2019 155,000 P130,000
2020 125,000 200,000
2021 140,000
P400,000 P470,000
In WIN.com's Dec. 31,2019 balance sheet, the balance for unearned subscription revenues should be
A. P470,000
B. P465,000
C. P400,000
D. P340,000
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
24th edition
1259916960, 978-1259916960
