Problem 1-24 (AICPA Adapted)Anette Video Company sells 1- and 2-year subscriptions forthe video-of-the-month business.Subscriptions are collected in advance and credited to sales.An analysis of the recorded sales activity revealed thefollowing:20202021SalesLess cancelations420,000500,00030,00020,000Neț sales400,000470,000Subscription expirations:2020202120222023120,000155,000125,000130,000200,000140,000400,000470,0001. On December 31, 2021, what amount should be reportedas unearned subscription revenue?a. 495,000b. 470,000c. 465,000d. 340,0002. What amount should be reported as subscription revenuefor 2021?a. 175,000b. 305,000c. 285,000d. 250,000

Unearned revenue is that amount which is received in advance for future period of time or for which…

Answered: Anette Video Company sells 1- and…

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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