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

Question 138

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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 entry is recorded when the cash is collected in May?
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 entry is recorded when the cash is collected in May?

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