Nuggets Company sells equipment service contracts that cover two-year period. The sale price of each contract is P600. The past experience is that, of the total peso spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. The entity sold 1,000 contract evenly throughout 2020

. - What is the contract revenue for 2020?

120,000

240,000

300,000

150,000

-What amount should be reported as deferred service revenue on December 31, 2020?

540,000

480,000

360,000

300,000

-What is the contract revenue for 2021?

180,000

360,000

300,000

120,000

-What is the contract revenue for 2022?

240.000

360,000

180,000

0