revenue recognition:

required:

a) record all necessary journal entries related to the transactions with James

in october 2021 (i.e., JE on october 1 and october 31, 2021)

b) assuming EHI uses a direct method for their cash flow statement, how will the transactions with James impact the cash flow statements for 2021 ans 2022? (include the section of the cash flow to be impacted and the amount that will be recorded in that section)

ETFone Home Incorporated (EHI) sells mobile phones and is a mobile service provider in Alberta. On October 1, 2021, James paid $200 upfront for a new cell phone from EHI and agreed to a non-cancellable contract for mobile service where he pays $80/month for over the next 24 months. James has a good credit history so there is no concern about him making future payments. You are the controller for El and must account for this transaction. You know that EH sells James' phone for $720 without a mobile service contract. You also know that James' mobile service plan costs $45/month for those that do not bundle their purchase like James did. Ignore the time value of money in responding to this question, and please show all your work