SmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1, 20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo’s monthly plan for 12 months and in return Kim Dorothy received a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On March 1, 20x7, the revenue from sales of goods amounted to: a. None b. P2,800
SmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1, 20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo’s monthly plan for 12 months and in return Kim Dorothy received a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On March 1, 20x7, the revenue from sales of goods amounted to: a. None b. P2,800
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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SmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1, 20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo’s monthly plan for 12 months and
in return Kim Dorothy received a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature.
SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset.
On March 1, 20x7, the revenue from sales of goods amounted to:
a. None
b. P2,800
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