Question
Telephone Sellers, Inc. is a distributor of prepaid telephone cards to customers in its convenience stores. When Telephone Sellers sells the cards, it then pays
Telephone Sellers, Inc. is a distributor of prepaid telephone cards to customers in its convenience stores. When Telephone Sellers sells the cards, it then pays the telecommunications company, TeleExpress, less a commission of 20 percent of the selling price to customers. Telephone Sellers receives $4,000 in cards in January 2020. Telephone Sellers sold 50% of the cards in February, 30% in March, and 20% in April. It costs TeleExpress $3,000 to provide the telephone service on the cards sold by Telephone Sellers. Indicate how much income Telephone Sellers should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.)
January income 0
February income 500
March income 300
April income 200
Telephone Sellers, Inc. is a distributor of prepaid telephone cards to customers in its convenience stores. When Telephone Sellers sells the cards, it then pays the telecommunications company, TeleExpress, less a commission of 20 percent of the selling price to customers. Telephone Sellers receives $4,000 in cards in January 2020. Telephone Sellers sold 50% of the cards in February, 30% in March, and 20% in April. It costs TeleExpress $3,000 to provide the telephone service on the cards sold by Telephone Sellers. Indicate how much income Telephone Sellers should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.) January income $ February income 500 $ $ March income 300 April income 200Step by Step Solution
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