Question: Bill's Computer Consulting has started offering a 3-year maintenance contract with the purchase of new computers. It's new customer, Pam's Party Supplies, is signing up

Bill's Computer Consulting has started offering a 3-year maintenance contract with the purchase of new computers. It's new customer, Pam's Party Supplies, is signing up for the maintenance contract, and purchasing 2 new computers and related software. What advice can you give Bill regarding invoicing in Quickbooks Online Advanced so that revenue for the maintenance contract is recognized over time?

(A) The service date must be at least a day before the invoice date (B) Bill needs to check the Rev Rec box on the line item next to the maintenance contract (C) The quantity needs to reflect the number of months of the maintenance contract (D) Bill needs to create two separate invoices: one for the maintenance contract and the other for the computers and software

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!