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?
Answer to relevant QuestionsRead Note 2(d)(ix) to Rogers' financial statements. What are loyalty programs and why do companies offer them to customers? Who pays for the "free" goods and services a customer receives from a loyalty program and how/when ...Examine the extract from Rogers' Management Discussion and Analysis called "Summarized Wireless Subscriber Results." How many new postpaid subscribers did Rogers add in 2011? How many subscribers did it lose? What was the ...Why is an amount of cash today more valuable than the same amount of cash in the future?Why is the direct writeoff method of accounting for bad debts not appropriate in accrual accounting? What is the quick ratio? How does the quick ratio differ from the current ratio? What would be a better measure of liquidity for a jewellery store, the quick ratio or the current ratio? Explain. Which would be the better ...
Post your question