Question: Complete Computer Services (CCS) sells computer packages which include supply of a computer which carries the normal warranty against faulty parts plus a two-year assistance

Complete Computer Services (CCS) sells computer packages which include supply of a computer which carries the normal warranty against faulty parts plus a two-year assistance package covering problems encountered using any software sold or supplied with the computer. This package is designed for the person who lacks confidence in the use of the computer and likes to feel they have help available if they want it. The costs which CCS incurs are €600 for the purchase of the computer, €20 for normal warranty costs and €30 a year to service the assistance service component. The sales revenue is €950 being assigned as €100 for the service assistance and €850 for the computer.
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Dr Bank 950 Cr Sales revenue 850 Cr Deferred revenue 100 Saleof computer an... View full answer

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