There is disagreement among accountants as to how subscriptions receivable should be reported on the balance sheet.
Required:
Describe three different ways in which subscriptions receivable can be reflected on the balance sheet and provide a justification for each alternative.

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cameron terry · Accepted Answer

Final Answer : Subscriptions should be reported as a current asset if collection is certain during the next 12 months or normal operating cycle, whichever is longer.They should be reflected as a noncurrent asset if collection is certain, but not within the current asset criteria.Finally, subscriptions receivable should be reported as a contra-stockholders' equity account when collection is uncertain.This last approach is required by the SEC.

There is disagreement among accountants as to how subscriptions receivable should be reported on the balance sheet.
Required:
Describe three different ways in which subscriptions receivable can be reflected on the balance sheet and provide a justification for each alternative.

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Learning Objectives

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There is disagreement among accountants as to how subscriptions receivable should be reported on the balance sheet.Required:Describe three different ways in which subscriptions receivable can be reflected on the balance sheet and provide a justification for each alternative.

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Learning Objectives

Learning Objectives

Related questions

There is disagreement among accountants as to how subscriptions receivable should be reported on the balance sheet.
Required:
Describe three different ways in which subscriptions receivable can be reflected on the balance sheet and provide a justification for each alternative.