On February 1, 2020, the Telecommunications Company sold cellular telephones and unlimited calls service to Customer A under contract 24 month. Customer A pays CU30 per month for network and telephone services mobile 'free'. The company sells to Customer B the same cellular phone for CU 150 and the same network service for CU 25 per month. Total it is also the price the company charges when calling a cell phone or network service sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: a. How the company recognizes its revenue to Customer A and Customer B? b. Keep a journal on February 1, 2020 and March 1, 2020 (if applicable
On February 1, 2020, the Telecommunications Company sold cellular telephones and unlimited calls service to Customer A under contract 24 month. Customer A pays CU30 per month for network and telephone services mobile 'free'. The company sells to Customer B the same cellular phone for CU 150 and the same network service for CU 25 per month. Total it is also the price the company charges when calling a cell phone or network service sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: a. How the company recognizes its revenue to Customer A and Customer B? b. Keep a journal on February 1, 2020 and March 1, 2020 (if applicable
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 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...
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