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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On February 1, 2020, the telecommunications company sold cellular phones and unlimited calls service to Customer A on a 24 month contract. Customer A pays CU30 per month for network and telephone servicesmobile 'free'. The Company sells Customer B the same cellular telephone for CU 150 and the same network services for CU 25 per month. The amount is also the price the company charges when the cellular phone or network service is sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions:a. How does the company recognize its revenue to Customer A and Customer B?b. Make a journal on February 1, 2020 and March 1, 2020 (if any)?
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