ABC Company sells subscriptions to a specialized directory, which is issued semi-annually and distributed to subscribers on April 15 and October 15. Subscriptions acquired after March 31 and September 30 deadlines are kept for the following issue. Cash from subscribers is received evenly through the year and is credited to deferred subscription revenues. The following data are for 2021: Deferred revenue from subscriptions, 12/31/20 - P3 million; Cash receipts from subscribers - P14.4 million In its December 31, 2021 balance sheet, how much should ABC Company report as deferred revenues from subscriptions?

Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
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Chapter8: Revenue Recognition, Receivables, And Advances From Customers
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ABC Company sells subscriptions to a specialized directory, which is issued semi-annually and distributed to subscribers on April 15 and October 15. Subscriptions acquired after March 31 and September 30 deadlines are kept for the following issue. Cash from subscribers is received evenly through the year and is credited to deferred subscription revenues. The following data are for 2021: Deferred revenue from subscriptions, 12/31/20 - P3 million; Cash receipts from subscribers - P14.4 million In its December 31, 2021 balance sheet, how much should ABC Company report as deferred revenues from subscriptions?
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