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9. Wooten Co. sells subscriptions for access to an online sharing site. Subscriptions are collected in advance a credited to sales. An analysis of the recorded sales activin revealed the following: 20x1 20x2 840,000 1,000,000 60,000 Sales Less cancellations 40,000 Net sales 800,000 940,000 Subscriptions expirations: 20x1 240,000 20x2 310,000 260,000 20x3 250,000 400,000 20x4 280,000 800,000 940,000 In Wooten's December 31, 20x2 statement of financial position, u the

9. Wooten Co. sells subscriptions for access to an online sharing site. Subscriptions are collected in advance a credited to sales. An analysis of the recorded sales activin revealed the following: 20x1 20x2 840,000 1,000,000 60,000 Sales Less cancellations 40,000 Net sales 800,000 940,000 Subscriptions expirations: 20x1 240,000 20x2 310,000 260,000 20x3 250,000 400,000 20x4 280,000 800,000 940,000 In Wooten's December 31, 20x2 statement of financial position, u the

FINANCIAL ACCOUNTING
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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9. Wooten Co. sells subscriptions for access to an online sharing site. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activin revealed the following: 20x1 20x2 Sales 840,000 1,000,000 Less cancellations 40,000 60,000 Net sales 800,000 940,000 Subscriptions expirations: 20x1 240,000 20x2 310,000 260,000 20x3 250,000 400,000 20x4 280,000 800,000 940,000 In Wooten's December 31, 20x2 statement of financial position, the balance of unearned subscription revenue should be b. 870,000. d. 280,000. a. 930,000, (AICPA-adapted) c. 465,000.
Transcribed Image Text:9. Wooten Co. sells subscriptions for access to an online sharing site. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activin revealed the following: 20x1 20x2 Sales 840,000 1,000,000 Less cancellations 40,000 60,000 Net sales 800,000 940,000 Subscriptions expirations: 20x1 240,000 20x2 310,000 260,000 20x3 250,000 400,000 20x4 280,000 800,000 940,000 In Wooten's December 31, 20x2 statement of financial position, the balance of unearned subscription revenue should be b. 870,000. d. 280,000. a. 930,000, (AICPA-adapted) c. 465,000.
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