Computing Magazine receives $100 in advance from a customer for a 2 year subscription. Computing Magazine's entry to record this transaction would include a:
A)debit to Subscription Revenue for $100.
B)credit to Subscription Revenue for $100.
C)debit to Unearned Subscription Revenue for $100.
D)credit to Unearned Subscription Revenue for $100.

Question

Quizplus · Accepted Answer

The $100 received in advance is considered unearned revenue, a liability, until the service is provided. Therefore, it is credited to Unearned Subscription Revenue.

Computing Magazine Receives $100 in Advance from a Customer for a 2