Real Losers,a Diet Magazine,collected $360,000 in Subscription Revenue in May

question 56

Multiple Choice

Real Losers,a diet magazine,collected $360,000 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.
-Real Losers,a diet magazine,collected $360,000 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.What is the balance in the Unearned revenue account at the end of December?

• A) $150,000
• B) $330,000
• C) $360,000
• D) $0

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has reasonably relied on that promise to their detriment.

Traditional Contract

A legally binding agreement following established legal formats and norms, typically involving a written document.

Unilateral

Involving only one party or side, often referring to actions or agreements made by one entity without the need for consent or participation of another.

Frequent Buyer

An individual or entity that consistently purchases goods or services from a particular company, often benefiting from loyalty programs.