Sweitzer Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $50 in advance for a one-year subscription. During the month of September 2012, Sweitzer Ltd. sold 200 one-year subscriptions and received payments in advance from all new subscribers. Only 120 of the new subscribers paid their fees in time to receive the September newsletter; the other subscriptions began with the October newsletter.
a) Write journal entries to record the effects of the following items:
1) Subscription fees received during September 2012.
2) Subscription revenue earned during September 2012.
b) Calculate the amount of subscription revenue earned by Sweitzer during the year ended December 31, 2012, for these 200 subscriptions.© BrainMass Inc. brainmass.com October 10, 2019, 6:07 am ad1c9bdddf
The attached MS Excel spreadsheet contains detailed illustrations and instructions for completion of the Sweitzer, Ltd revenue recognition exercise.