Pickett Company Typically Sells Subscriptions on an Annual Basis, and Publishes

question 33

Multiple Choice

Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 90,000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions?

• A) Subscriptions Receivable 1,350,000 Subscription Revenue 1,350,000
• B) Cash 1,350,000 Unearned Subscription Revenue 1,350,000
• C) Subscriptions Receivable 225,000 Unearned Subscription Revenue 225,000
• D) Prepaid Subscriptions 1,350,000 Cash 1,350,000