1. AB sells computer equipment with a two-year service contract totaling $3,000 on October 1, 2014. The cost of providing warranty service is $200 per year and AB generally charges a 25% surcharge on the cost when selling the service separately. 
2. How much revenue should be recognized in the financial statements for the year ended March 31, 2015?

Answer rating: 100% (QA)

To recognize revenue for the year ended March 31 2015 we need to apply the revenue recognition princ... View the full answer