Please answer in detail explanation. i will really appreciate it. Question: Explain how to recognize the revenue
Question:
Please answer in detail explanation. i will really appreciate it.
Question:
Explain how to recognize the revenue if you have the information below.
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