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Assume that a company is selling high-end curved monitors with included three-year onsite repair service on these monitors. The company also sells these monitors and
Assume that a company is selling high-end curved monitors with included three-year onsite repair service on these monitors. The company also sells these monitors and the three-year repair service separately at specific prices. Which of the following accounting treatments is likely correct for a sale of a batch of monitors with included three-year onsite repair service? Group of answer choices Recognizing the full revenue for the monitors and the repair service in the year the monitors are sold Recognizing the revenue for the monitors and the repair service proportionately over three years Recognizing the full revenue for the monitors in the year they are sold and the revenue for the repair service proportionately over three years Recognizing the revenue for the monitors proportionately over three years and the full revenue for the repair service in the year the monitors are sold
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