True Tech Industries sells one year subscriptions to the Tri Net multi- use platform of Internet based games. True Tech sells 1,000 subscriptions for $60 each to customers on October 1, 2021. Payment is made by the customers at the time of sale (i.e. on October 1, 2021. ) determine whether the seller should recognize revenue over a period of time or at a point in time.
True Tech Industries sells one year subscriptions to the Tri Net multi- use platform of Internet based games. True Tech sells 1,000 subscriptions for $60 each to customers on October 1, 2021. Payment is made by the customers at the time of sale (i.e. on October 1, 2021. ) determine whether the seller should recognize revenue over a period of time or at a point in time.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
True Tech Industries sells one year subscriptions to the Tri Net multi- use platform of Internet based games. True Tech sells 1,000 subscriptions for $60 each to customers on October 1, 2021. Payment is made by the customers at the time of sale (i.e. on October 1, 2021. )
determine whether the seller should recognize revenue over a period of time or at a point in time.
Expert Solution
Step 1
Accrual system of accounting says that every thing which is accrued has to be provided in books of accounts whether paid or not.
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