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

question 69

Short Answer

Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 60,000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions?

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Definitions:

Period Costs

Expenses that are not directly tied to production and are accounted for in the period in which they are incurred, such as selling and administrative expenses.

September

The month that appears as the ninth in the sequence of months in the Gregorian calendar.

Fixed Manufacturing Cost

A type of overhead cost that does not change with the level of production, such as rent, salaries, and insurance.

Units Produced

Units produced refers to the total number of completed units of a product that a company has manufactured within a specific period.