There Is Disagreement Among Accountants as to How Subscriptions Receivable

question 91

Essay

There is disagreement among accountants as to how subscriptions receivable should be reported on the balance sheet.
Required:
Describe three different ways in which subscriptions receivable can be reflected on the balance sheet and provide a justification for each alternative.

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Definitions:

Deposit Slip

A written form that lists cash and checks being deposited in a bank account and cash received from the amount being deposited.

Currency

A system of money in general use in a particular country, representing the medium of exchange for goods and services.

Check Register

A place for recording important information about each transaction.

Cash Balance

The amount of cash on hand or in a bank account that is immediately available for use.