Good Health Magazine (GHM) is a monthly publication devoted to healthful living. The magazine is published monthly
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Readers can also subscribe to the magazine for one, two, or three-year periods. With a subscription GHM mails the magazine to the subscriber each month, after payment in full for the subscription is received. The subscription price per copy is substantially lower than the newsstand price. GHM promises to refund any unused portion of the subscription. Historically, about 5 percent of customers ask for a refund.
Required:
Explain how GHM should recognize its revenue. Consider newsstand and subscription revenue separately. Be sure to use the revenue recognition criteria to support your answer.
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