Indicate how much income Ayayai should recognize in January, February, March, and April.
Indicate how much income Ayayai should recognize in January, February, March, and April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ayayai Inc. sells prepaid telephone cards to customers. Ayayai then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Ayayai sells $4,100 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 55% in February, 25% in March, and 20% in April. The total payment by Ayayai for TeleExpress lines over the 3 months is $3,000.
Indicate how much income Ayayai should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.)
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January income
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February income
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March income
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April income
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