On February 1, 2020, the telecommunications company sold cellular phones and unlimited calls service to Customer A with a 24 month contract. Customer A pays CU30 per month for 'free' network and cell phone services. The Company sells Customer B the same cellular phone for CU 300 and the same network services for CU 20 per month. The amount is also the price the company charges when the cellular phone or network service is sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: How does the company recognize its revenue to customer A and customer B? Proposed a journal on February 1, 2020 and March 1, 2020 (if any)
On February 1, 2020, the telecommunications company sold cellular phones and unlimited calls service to Customer A with a 24 month contract. Customer A pays CU30 per month for 'free' network and cell phone services. The Company sells Customer B the same cellular phone for CU 300 and the same network services for CU 20 per month. The amount is also the price the company charges when the cellular phone or network service is sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: How does the company recognize its revenue to customer A and customer B? Proposed a journal on February 1, 2020 and March 1, 2020 (if any)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...
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On February 1, 2020, the telecommunications company sold cellular phones and unlimited calls service to Customer A with a 24 month contract. Customer A pays CU30 per month for 'free' network and cell phone services.
The Company sells Customer B the same cellular phone for CU 300 and the same network services for CU 20 per month.
The amount is also the price the company charges when the cellular phone or network service is sold separately. The time value effect of money is negligible in this case.
Based on the above case, answer the following questions:
- How does the company recognize its revenue to customer A and customer B?
- Proposed a journal on February 1, 2020 and March 1, 2020 (if any)
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