On January 2,2018,AAA Publishing,Inc

question 1

Multiple Choice

On January 2,2018,AAA Publishing,Inc.received a one-year subscription for $100 to one of the magazines that it publishes.At that time,it debited cash for $100 and credited Deferred Revenue for $100.After all the magazines have been delivered through December 31,2018,what journal entry needs to be recorded?

• A)Debit Cash for $100 and credit Deferred Revenue for $100
• B)Debit Accounts Receivable for $100 and credit Subscription Revenue for $100
• C)Debit Accounts Receivable for $100 and credit Deferred Revenue for $100
• D)Debit Deferred Revenue for $100 and credit Subscription Revenue for $100

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Definitions:

First-In, First-Out

An inventory valuation method where the cost of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Last-In, First-Out

An inventory valuation method where the costs of the most recently acquired items are the first to be expensed.

LIFO

An inventory cost methodology assuming the most recently added items to the inventory are sold first, short for "Last-In, First-Out."

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold.