Aneen’s Video Mart sells one- and two-year mail order subscriptions for its video-of-the-month business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following:

2009 2010 Sales $420,000 $500,000 Less cancellations 20,000 30,000 Net sales $400,000 $470,000 Subscriptions expirations:

2009 $120,000 2010 155,000 $130,000 2011 125,000 200,000 2012 140,000

$400,000 $470,000 In Aneen’s December 31, 2010 balance sheet, the balance for unearned subscription revenue should be

a. $495,000

b. $470,000

c. $465,000

d. $340,000