Deferred revenue: It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed. To Journalize: the entry that Company S would make at the time it sells its subscription.

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Answer 1

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

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Students have asked these similar questions

See the attached pic first before answering. On June 18, ABC Company paid the purchases on June 13 which is within the discount period. On June 25 it paid the Purchases on June 14 which is beyond the discount period. How much Purchases for the month of June should be recognized using the Net Method? A. P1,540,000 B. P1,587,500 C. P1.586,000 D. P1,599,000

If Dome Corporation does not record a sale made on account in December until a month later when the customer pays its invoice, how will Dome’s December financial statements be impacted?

When should companies that sell gift cards to customersreport revenue?a. When the gift card is issued and cash is received.b. When the gift card is used by the customer.c. At the end of the year in which the gift card is issued.d. None of the above.

Answer 2

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Answer 6

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

Answer 7

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

Answer 8

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Answer 9

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 8 - Prob. 1RQ Ch. 8 - Prob. 2RQ Ch. 8 - Prob. 3RQ Ch. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQ Ch. 8 - Prob. 6RQ Ch. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQ Ch. 8 - Prob. 9RQ Ch. 8 - Prob. 10RQ

Solution Summary: The author explains that deferred revenue is an advance made by the buyer before receiving the product or service. It is a current liability until the goods are delivered or the service is performed.

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Chapter 8 Solutions