Chapter 2, Problem 2.1TIATC

Before you begin this assignment, renew the Tymg It All Together feature in the chapter.

Part of the Fry’s Electronics, lnc.’s expenence mvolves providing technical support to its customers. This includes in-home installations of electronics and also computer suppot at their retail store locations.

Requirements

1. Suppose Fry’s Electronics Inc. povides $10,500 of computer support at the Dallas-Fort Worth store durnig the month of November. How would Fry’s Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect?
2. Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect?
3. What is the defference in how revenue is record in reqirements l and 2? Clearly state when revenue is recorded in each requirement.