AAA Company entered into a contract with a private company on July 1, 2020. The

private company subscribes for a monthly plan for 12 months and in return, the private

company receives free handset. The private company will pay monthly fee of P1,600 and

it gets the handset immediately after signing the contract. AAA sells the same handset

for P4,800 and the same monthly plans for P1,280 without the handset.

Determine the following:

a. Revenue to be recognized on 2020 and 2021

b. Entries to record the transactions for 2020 and 2021