5 ABC Ltd, a SaaS company sells customers a subscription service. It entered into acontract with Customer A to provide services at $36k for 12 months starting March 1,2022. The entire fee needs to be paid in advance upon signing the contract.a) Suggest accounting of the said transaction in March 2022 and April 2022?b) If ABC Ltd decides to invoice and collect the $36k at the end of the subscriptionperiod, what would be the change in answer (a) above?c) Suppose the customer is also supposed to pay $5,000 towards implementationcosts. These charges are to be paid up-front as one-time charges. How do you suggestwe recognise revenue earned from implementation costs charged to the customer?How does this affect the way we account for the expense incurred by the company onimplementation?

Subscription Services : The service provider company provide the services on the product timely as…

sub ontract with Customer A to provide services at $36k for 12 months starting March 022. The entire fee needs to be paid in advance upon signing the contract. Suggest accounting of the said transaction in March 2022 and April 2022? If ABC Ltd decides to invoice and collect the $36k at the end of the subscription eriod, what would be the change in answer (a) above? Suppose the customer is also supposed to pay $5,000 towards implementation osts. These charges are to be paid up-front as one-time charges. How do you sugg e recognise revenue earned from implementation costs charged to the customer?

sub ontract with Customer A to provide services at $36k for 12 months starting March 022. The entire fee needs to be paid in advance upon signing the contract. Suggest accounting of the said transaction in March 2022 and April 2022? If ABC Ltd decides to invoice and collect the $36k at the end of the subscription eriod, what would be the change in answer (a) above? Suppose the customer is also supposed to pay $5,000 towards implementation osts. These charges are to be paid up-front as one-time charges. How do you sugg e recognise revenue earned from implementation costs charged to the customer?

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 7C: On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial...

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