(s) In November and December of 2020, Marle Co. received $380,000 for 25,333 2 year subscriptions to their new magazine, starting in 2021. How much revenue should Marle Co. record in 2020 from these subscriptions? (AC 12) O $0 O $31,667 O $190,000 O $380,000

(s) In November and December of 2020, Marle Co. received $380,000 for 25,333 2 year subscriptions to their new magazine, starting in 2021. How much revenue should Marle Co. record in 2020 from these subscriptions? (AC 12) O $0 O $31,667 O $190,000 O $380,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

(s) In November and December of 2020, Marle Co. received $380,000 for 25,333 2 year
subscriptions to their new magazine, starting in 2021. How much revenue should Marle Co. record in 2020
from these subscriptions? (AC 12)
O $0
O $31,667
O $190,000
O $380,000

Expert Solution

Step 1

The revenue recognition principle state that, the organization can recognize revenue if the services are provided or the revenue has been earned. Irrespective of cash receipt or not.

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