6. NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3- year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. 2018 2019 2020 Number of service contracts sold 1,400 1,820 1,650
6. NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3- year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. 2018 2019 2020 Number of service contracts sold 1,400 1,820 1,650
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![6. NAPAPALUNOK AKO AS OF
THE MOMENT INC. sells 3-
year service contracts for air
conditioning units for P1,500
each. Sales of service
contracts are made evenly
throughout each year. The
company estimates that 15%
of repairs are done in the first
year from the date of sale,
35% in the second year, and
50% in the third year. Service
contracts sold are as follows.
2018
2019
2020
Number of service contracts sold
1,400
1,820
1,650](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe50afc86-5a12-45a6-9f02-e8c6d43d0b63%2F8faaf280-4cb1-4f84-ac3d-270b102ed7a9%2Fam5xsdvt_processed.png&w=3840&q=75)
Transcribed Image Text:6. NAPAPALUNOK AKO AS OF
THE MOMENT INC. sells 3-
year service contracts for air
conditioning units for P1,500
each. Sales of service
contracts are made evenly
throughout each year. The
company estimates that 15%
of repairs are done in the first
year from the date of sale,
35% in the second year, and
50% in the third year. Service
contracts sold are as follows.
2018
2019
2020
Number of service contracts sold
1,400
1,820
1,650
![7. Use the information given in
MC 6. How much revenue
from service contracts is
recognized in 2019? *
a. P204,750
O b. P525,000
O c. P729,750
O d. P1,144,500
8. Use the information given in
MC 6. How much revenue
from service contracts sold in
2019 is recognized in 2020? *
a. P682,500
b. P862,500
O c. P955,500
O d. P1,842,750](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe50afc86-5a12-45a6-9f02-e8c6d43d0b63%2F8faaf280-4cb1-4f84-ac3d-270b102ed7a9%2F4rgqn25_processed.png&w=3840&q=75)
Transcribed Image Text:7. Use the information given in
MC 6. How much revenue
from service contracts is
recognized in 2019? *
a. P204,750
O b. P525,000
O c. P729,750
O d. P1,144,500
8. Use the information given in
MC 6. How much revenue
from service contracts sold in
2019 is recognized in 2020? *
a. P682,500
b. P862,500
O c. P955,500
O d. P1,842,750
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