Bedeque Wireless Inc. provides wireless communications all over Canada. A customer who signs up for a three-year plan with Bedeque receives a free phone. A typical plan would cost $35 per month (plus applicable taxes and charges). The phone the customer would receive has a retail price of $450. A similar Bedeque plan without the phone costs $25 per month.

a. Describe the different products Bedeque is selling.
b. What are possible alternative ways of recognizing the revenue on the package purchased by the customer?
c. How much revenue would be recorded at the inception of the contract and monthly under each of the alternatives you identified in part (b) above?

  • CreatedFebruary 26, 2015
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