Carrot Company sells one and two-year mail order subscriptions for video of the month business. Subscriptions are collected in advance and credited to a revenue account. An analysis of the recorded sales activity revealed the following: 20212022Sales780,000950,000Cancellations10,00040,000Subscription expiration: 2021130,000 2022350,000190,000 2023290,000400,000 2024 320,000 How much is the unearned subscription revenue as of December 31, 2022?

Solution Unearned subscription revenue Unearned subscription revenue means the amount that has been…

Answered: Carrot Company sells one and two-year…

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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Carrot Company sells one and two-year mail order subscriptions for video of the month business. Subscriptions are collected in advance and credited to a revenue account. An analysis of the recorded sales activity revealed the following:

	2021	2022
Sales	780,000	950,000
Cancellations	10,000	40,000
Subscription expiration:
2021	130,000
2022	350,000	190,000
2023	290,000	400,000
2024		320,000

How much is the unearned subscription revenue as of December 31, 2022?

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