Explore,a Travel Magazine,collected $500,000 in Subscription Revenue in May

question 28

Essay

Explore,a travel magazine,collected $500,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.The company uses the accrual method of accounting.Provide the journal entry for collection of cash in May.(Ignore explanation. )Assume the magazine initially records a liability for the subscription revenue.

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Definitions:

Loyalty

Loyalty is a devoted allegiance or commitment to a cause, individual, group, or brand.

Go Beyond

To exceed the basic requirements or expectations, often aiming for higher achievement or understanding.

Organizational Commitment

The psychological attachment and loyalty an employee feels towards their organization, often reflected in their willingness to give effort and intention to stay.

Rational Commitments

Decisions or pledges made based on logical reasoning and careful consideration of the facts.