ACER Company enters into a contract on September 1, 2015 to conduct computer marketing activities on...
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ACER Company enters into a contract on September 1, 2015 to conduct computer marketing activities on behalf of a customer. The contract has a price of P8,000 and requires ACER Company to contract 10,000 households over a period of six months in order to enquire about buying habits and promote its customer. The customer is invoiced equal amounts three months and six months after the commencement of the contract. By ACER Company's year-end of December 31, 2015, it has contacted 3,500 of the 10,000 customers. What amount does ACER Company recognize in its financial statements in the year ended December 31, 2015? (show computation, 2 points) a. A revenue of P4,000 and a receivable of P4,000 b. A revenue of P4,000 and a contract liability pf P4,000 c. A revenue of P2,800 and a receivable of P4,000 and a contract asset of P1,200 d. A revenue of P2,800 and a receivable of P4,000 and a contract liability of P1,200 ACER Company enters into a contract on September 1, 2015 to conduct computer marketing activities on behalf of a customer. The contract has a price of P8,000 and requires ACER Company to contract 10,000 households over a period of six months in order to enquire about buying habits and promote its customer. The customer is invoiced equal amounts three months and six months after the commencement of the contract. By ACER Company's year-end of December 31, 2015, it has contacted 3,500 of the 10,000 customers. What amount does ACER Company recognize in its financial statements in the year ended December 31, 2015? (show computation, 2 points) a. A revenue of P4,000 and a receivable of P4,000 b. A revenue of P4,000 and a contract liability pf P4,000 c. A revenue of P2,800 and a receivable of P4,000 and a contract asset of P1,200 d. A revenue of P2,800 and a receivable of P4,000 and a contract liability of P1,200
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c A revenue of P 2800 and a receivable of P 4000 and a contract asset of P 1200 Expl... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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