Telephone Sellers sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for
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Telephone Sellers sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Telephone Sellers sells £4,000 of prepaid cards in January 2022. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Telephone Sellers for TeleExpress lines over the 3 months is £3,000. Indicate how much income Telephone Sellers should recognize in January, February, March, and April.
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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