Complete Electronics Inc. sells a point - of - sale computer with a two- year service contract. Complete collects $3,500 cash for the selling price of the computer and $648 for the two- year service contract. How is revenue recognized? O A. Complete will record Sales Revenue of $3,500 when the computer is delivered and will record revenue for the service contract as service calls are made. O B. Complete will record Sales Revenue of $2,074 per year for two years. OC. Complete will record Sales Revenue of $4,148 when the computer is delivered to the customer. O D. Complețe will record Sales Revenue of $3,500 when the computer is delivered and Service Revenue of $27 per month for 24 months.

Complete Electronics Inc. sells a point - of - sale computer with a two- year service contract. Complete collects $3,500 cash for the selling price of the computer and $648 for the two- year service contract. How is revenue recognized? O A. Complete will record Sales Revenue of $3,500 when the computer is delivered and will record revenue for the service contract as service calls are made. O B. Complete will record Sales Revenue of $2,074 per year for two years. OC. Complete will record Sales Revenue of $4,148 when the computer is delivered to the customer. O D. Complețe will record Sales Revenue of $3,500 when the computer is delivered and Service Revenue of $27 per month for 24 months.

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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