Question: When customers sign contracts for wireless services with Rogers they
When customers sign contracts for wireless services with Rogers, they often receive a "free" phone. Are these phones really free? Explain how the phones are paid for if customers don't pay for them when they are received. What possible ways could Rogers recognize revenue on packages that include a free phone and three-year service contract? What would be the impact of the different ways on the income statement? Which would you recommend? Explain why.
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