Revenue Allocation | Option A | Per month | Option B | Per month | Option C | Per month |
Phone: Immdiate Recognition | 0 | 370 | 620 | |||
Cellular service | 576 | 48 | 576 | 48 | 0 | 0 |
Total | 576 | 946 | 620 | |||
Note 1 | ||||||
Note 1: | ||||||
Under Option A, Though the cellular service contract is for three
years, only the current year service revenue is recognized. The
following two years revenue will be recognized in their respective
years only, and not now. Further, As the Phone has been issued for free, no revenue for the same is recognized. |
||||||
48*12 = 576 |
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