In December 2020, Quebecor Printing received magazine subscriptions for 2021 from customers, who paid $500 in cash. What would be the appropriate journal entry for this event in December 2020?

In December 2020, Quebecor Printing received magazine subscriptions for 2021 from customers, who paid $500 in cash. What would be the appropriate journal entry for this event in December 2020?



A) Debit Cash, $500 credit Subscription Revenue, $500.

B) Debit Cash, $500 credit Deferred Revenue, $500.

C) Debit Subscription Revenue, $500 credit Cash, $500.

D) No journal entry is necessary.


Answer: B


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