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a two-year period. The sale price of each contract is P600. The past experience is that, of the total pesos spent for the first contract year and 60% evenly during the second repairs on service contracts, 40% is incurred evenly during Dunne Company sells equipment service contracts that cover contract year. The entity sold 1,000 contracts evenly throughout 2020. 1. What is the contract revenue for 2020?

a two-year period. The sale price of each contract is P600. The past experience is that, of the total pesos spent for the first contract year and 60% evenly during the second repairs on service contracts, 40% is incurred evenly during Dunne Company sells equipment service contracts that cover contract year. The entity sold 1,000 contracts evenly throughout 2020. 1. What is the contract revenue for 2020?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. What is the contract revenue for 2021? a. 180,000 b. 360,000 c. 300,000 d. 120,000 4. What is the contract revenue for 2022? a. 240,000 b. 360,000 c. 180,000 d.
Transcribed Image Text:3. What is the contract revenue for 2021? a. 180,000 b. 360,000 c. 300,000 d. 120,000 4. What is the contract revenue for 2022? a. 240,000 b. 360,000 c. 180,000 d.
The past experience is that, of the total pesos spent for Problem 1-20 (AICPA Adapted) repairs on service contracts, 40% is incurred evenly during Dunne Company sells equipment service contracts that cover a two-year period. The sale price of each contract is P600 The past experience is that, of the total pesos spent for the first contract year and 60% evenly during the second contract year. The entity sold 1,000 contracts evenly throughout 2020. 1. What is the contract revenue for 2020? a. 120,000 b. 240,000 c. 300,000 d. 150,000
Transcribed Image Text:The past experience is that, of the total pesos spent for Problem 1-20 (AICPA Adapted) repairs on service contracts, 40% is incurred evenly during Dunne Company sells equipment service contracts that cover a two-year period. The sale price of each contract is P600 The past experience is that, of the total pesos spent for the first contract year and 60% evenly during the second contract year. The entity sold 1,000 contracts evenly throughout 2020. 1. What is the contract revenue for 2020? a. 120,000 b. 240,000 c. 300,000 d. 150,000
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