Question
Please answer in detail explanation. i will really appreciate it. Question: Explain how to recognize the revenue if you have the information below. The A
Please answer in detail explanation. i will really appreciate it.
Question:
Explain how to recognize the revenue if you have the information below.
The A company sells copy machine at a sales price of JPY1,500,000per unit. The sales price includes delivery and installation. It also givesa maintenance service (6years) in which a technician checks to make sure that the machine is working properly with a price of JPY500,000(one-time prepayment).
The A company has started a promotion campaign in which the maintenance service (6years) will be offered for free to aclient that buys a copy machine of JPY 1,728,000.
The A company has made a contract to sell a copy machine with the maintenance service (6years) to B company by JPY 1,728,000
Step by Step Solution
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Step: 1
Answer Transaction General Journal Debit JPY CreditJPY 1 Accounts Receivable 1728000 Sales Revenu...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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