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Mentle Publications publishes a gold magazine for women. The magazine sells for $4.00 a copy on the newsstand. Yearly subscriptions to the magazine cost $36 per year (12 issues). During December 2009, Expert Publications sells 4,000 copies of the golf magazine at newsstands and receives payment for 5,000 subscriptions for 2010. Financial statments are prepared monthly.
1. Prepare the December 2009 journal entries to record the newsstand sales and subscriptions received. (assume that the debit is to cash)
2. Prepare the necessary adjusting entry on January 31, 2010. The January 2010 issue has been mailed to subscribers.
What is meant by the terms relevant and irrelevant costs and revenues in Strategic Management Accounting decision making? Include several small numerical examples in your answer.
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