C Technologies Ltd. provides maintenance service for computers and office equipment. The sales manager is delighted because she closed a $300,000, three-year maintenance contract on December 29, 2017, two days before the company's year end. "Now we will hit this year's net income target for sure," she crowed. The customer is required to pay $100,000 on December 29 (the day the deal was closed). Two more payments of $100,000 each are also required on December 29, 2018, and 2019. Instructions: Using revenue and expense recognition criteria, discuss the 10 points effect that this event will have on the company's financial statements for 2017, 2018, and 2019. * Your answer Back Next