Question: Contract Modification Assume the same facts as in E17-5. On July 1, 2017, the customer realizes that she needs less data in her wireless plan

Contract Modification Assume the same facts as in E17-5. On July 1, 2017, the customer realizes that she needs less data in her wireless plan and downgrades to the unlimited talk and 2 GB data plan for the remaining term of the contract (18 months). The unlimited talk and 2 GB data plan is priced at $55 per month. The $55 per month is Louds current stand-alone price for this plan that is available to all customers.

Required: 1. How should Loud account for this contract modification?

2. Provide Louds new monthly revenue recognition journal entry.

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