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On january 1, fashion forward magazine received $15,000 from subscribers for the annual subscriptions that it recorded in unearned subscription revenue. the issues of the magazine are mailed to subscribers quarterly. what amount of subscription revenue should the magazine recognize on march 31 when the first issue is sent in march?

Respuesta :

The correct answer is $3,750.

Since this magazine is published quarterly, the $15,000 in subscription revenue needs to by distributed equally over the four quarters of the year. When you divide $15,000 by 4 the answer is $3,750, which is the amount that is earned in each of the four quarters of the year.

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