On October 1, 2018, $16,000 of Annual Magazine Subscriptions Were

question 49

Essay

On October 1, 2018, $16,000 of annual magazine subscriptions were sold by Boating Monthly. The subscribed magazines are delivered on the first day of each month beginning on October 1, 2018. The total cost of the subscribed magazines is $6,000 or $500 per monthly delivery. Using the four criteria necessary for revenue recognition, present an argument for not recognizing $10,000 of revenue during 2018.

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Definitions:

Extinction

In behavioral psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Spontaneous Recovery

A phenomenon in learning where a previously extinguished response reemerges after a period without exposure to the conditioned stimulus.

Bandura's Study

Refers to research conducted by psychologist Albert Bandura, especially known for his work on social learning theory and the concept of self-efficacy.

Aggression

Behavior intended to harm or intimidate others, manifesting physically or verbally.