Explain how to recognize the revenue if you have the information below.Use a boldface typefor importantaccounting terminologies
Question:
Explain how to recognize the revenue if you have the information below.Use a boldface typefor importantaccounting terminologies or words in your report.
The A company sells copy machine at a sales price of JPY1,500,000per unit. The sales price includes delivery and installation. It also givesa maintenance service (6years) in which a technician checks to make sure that the machine is working properly with a price of JPY500,000(one-time prepayment).The A company has started a promotion campaign in which the maintenance service (6years) will be offered for free to aclient that buys a copy machine of JPY 1,728,000. The A company has made a contract to sell a copy machine with the maintenance service (6years) to B company by JPY 1,728,000.
Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly