Background: © LAURENT DAVOUST , ISTOCK; Real World: PRNEWSFOTO/APPLE/AP PHOTO
Accounti n g I n T h e R ea l Wo rl d
iTunes
I
s digital music catching on? To answer this question, all
you have to do is look at the statistics. According to its
website, iTunes offers more than 11 million songs for sale
and has sold over 10 billion downloads.
Why is an online music store like iTunes so successful?
There are many reasons. iTunes not only sells
downloads, but it also provides a free player which can
be used to manage many tasks.
iTunes' customers can take their music with them,
wherever they go. They don't have to drive to the mall or
wait for a CD in the mail. Songs can be downloaded at
any time—24 hours a day, 7 days a week. Customers can
preview a song before they buy it, which increases their
satisfaction rate.
Since its customers don't have to drive to a store and
don't physically purchase an item, iTunes is also friendly
to the environment. Less driving helps the environment.
In addition, no CDs means no packaging, CDs, or CD
cases in the trash.
What if an iTunes customer doesn't like the order of
songs on an album? iTunes lets one organize songs in
any order. iTunes also allows listeners to enjoy tunes on
many portable devices. Clients can download movies
and college lectures as well as music.
1. When iTunes sells a song or movie, it must record the
transaction in accounts. Which accounts might iTunes
use when it sells a song for cash?
2. What accounts might iTunes use when it has shipping
costs on account?
Key Terms
Journalizing Transactions
Chapter 3
57
