Question: Some Rogers Wireless customers purchase prepaid services For example a
Some Rogers Wireless customers purchase prepaid services. For example, a prepaid wireless customer will pay in advance for airtime and her phone will work as long as there is money in the account. How much revenue did Rogers recognize in 2011 for prepaid wireless services? How does Rogers recognize revenue on services customers pay for in advance? What journal entry would Rogers record when a customer prepays for airtime? How should Rogers account for prepaid services if the services are never used? Should it be recognized as revenue and if so, when? Would your answer change if amounts paid in advance expire after a period of time?
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