Larkspur Inc. sells prepaid telephone cards to customers in its convenience stores. When Larkspur sells cards, it

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Larkspur Inc. sells prepaid telephone cards to customers in its convenience stores. When Larkspur sells cards, it then pays the telecommunications company, TeleExpress, for the value of the cards less a 20% commission. Assume that Larkspur receives $4,000 of prepaid cards in January 2025. Larkspur sold 50% of the cards in February, 30% in March, and 20% in April. The total payment by Larkspur to TeleExpress over the 3 months is $3,200. Indicate how much income Larkspur should recognize in January, February, March, and April.

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Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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