On February 1, 2020, the Telecommunications Company sold cellular telephones and unlimited calls service to Customer A under contract 24 month. Customer A pays CU30 per month for network and telephone services mobile 'free'. The company sells to Customer B the same cellular phone for CU 150 and the same network service for CU 25 per month. Total it is also the price the company charges when calling a cell phone or network service sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: a. How the company recognizes its revenue to Customer A and Customer B? b. Keep a journal on February 1, 2020 and March 1, 2020 (if applicable

On February 1, 2020, the Telecommunications Company sold cellular telephones and unlimited calls service to Customer A under contract 24 month. Customer A pays CU30 per month for network and telephone services mobile 'free'. The company sells to Customer B the same cellular phone for CU 150 and the same network service for CU 25 per month. Total it is also the price the company charges when calling a cell phone or network service sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: a. How the company recognizes its revenue to Customer A and Customer B? b. Keep a journal on February 1, 2020 and March 1, 2020 (if applicable

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

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Question

On February 1, 2020, the Telecommunications Company sold cellular telephones and
unlimited calls service to Customer A under contract 24 month. Customer A pays CU30 per
month for network and telephone services mobile 'free'. The company sells to Customer B the
same cellular phone for CU 150 and the same network service for CU 25 per month. Total it
is also the price the company charges when calling a cell phone or network service sold
separately. The time value effect of money is negligible in this case.
Based on the above case, answer the following questions:
a. How the company recognizes its revenue to Customer A and Customer B?
b. Keep a journal on February 1, 2020 and March 1, 2020 (if applicable

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