Part of the Fry's Electronics, Inc.'s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations.
Requirements
1. Suppose Fry's Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect?
2. Assume Fry's Electronics, Inc.'s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry's Electronics record this transaction? What financial statement(s) would this transaction affect?
3. What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.