Healthy Living, a Diet Magazine, Collected $480,000 in Subscription Revenue

question 139

Multiple Choice

Healthy Living, a diet magazine, collected $480,000 in subscription revenue on May 31st. Healthy Living earns a minimum of $351,000 from the buyers who are not the subscribers. 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. By the end of December, what is the amount of Subscription Revenue that has been earned?

• A)$204,750
• B)$351,000
• C)$480,000
• D)$280,000

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Definitions:

Applied Psychology

The field of psychology concerned with applying psychological principles and research to solve practical problems in human behavior and experience.

South Africa

A country located at the southern tip of Africa, known for its diverse cultures, languages, and significant historical contexts.

Traditional African Culture

A collective term for the diverse cultures, beliefs, social practices, and products of the African continent that predate or have developed independently of Western influences.

Death

The permanent cessation of all biological functions that sustain a living organism, marking the end of life.