On March 1, 20X1, Token Texx (TT), a telecommunications operator, entered into a contract with Dianne Gonzales. In line with the contract, Dianne subscribes to TT’s monthly plan for 12 months, and in return, Dianne receives a free Samsung handset from TT. Dianne will pay a monthly fee of P1,200. Dianne gets the handset immediately after signing contract. TT sells the same handset for P2,400 and the same monthly plans for P800 per month without the handset. On March 1, 20X1, how much revenue from sale of goods should be recognized by TT?
On March 1, 20X1, Token Texx (TT), a telecommunications operator, entered into a contract with Dianne Gonzales. In line with the contract, Dianne subscribes to TT’s monthly plan for 12 months, and in return, Dianne receives a free Samsung handset from TT. Dianne will pay a monthly fee of P1,200. Dianne gets the handset immediately after signing contract. TT sells the same handset for P2,400 and the same monthly plans for P800 per month without the handset. On March 1, 20X1, how much revenue from sale of goods should be recognized by TT?
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 6C: On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp....
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On March 1, 20X1, Token Texx (TT), a telecommunications operator, entered into a contract with Dianne Gonzales. In line with the contract, Dianne subscribes to TT’s monthly plan for 12 months, and in return, Dianne receives a free Samsung handset from TT. Dianne will pay a monthly fee of P1,200. Dianne gets the handset immediately after signing contract.
TT sells the same handset for P2,400 and the same monthly plans for P800 per month without the handset.
On March 1, 20X1, how much revenue from sale of goods should be recognized by TT?
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