Question

Dominion Mobile Incorporated provides cell phone ser-vices. The company conducts a special sales campaign in which new subscribers will get a high- end cell phone for only $ 100 if they sign a 36- month contract that has a service fee of $ 100 per month. Thus, the total price of the cell phone plus 36 months of service is $ 3,700. The company normally sells the phone for $ 1,000. Current subscribers pay $ 60 per month for comparable service but are not permitted to take advantage of the $ 100 cell phone offer.

Required:
Determine how a customer contract for $ 3,700 should be recognized.



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  • CreatedFebruary 17, 2015
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