Question

 Kingbird Inc. sells prepaid telephone cards to customers. Kingbird then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Kingbird sells $3,500 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Kingbird for TeleExpress lines over the three months is $1,500.

 Indicate how much income Kingbird should recognize in January, February, March, and April under IFRS. (Do not leave any answer field blank. Enter 0 for amounts.)

Answer 1

3500-1500 =2000

2000*0.5 =1000

2000*0.3=600

2000*0.2=400

Jan =0

Feb =1000

Mar =600

Apr =400

If there is commission, the number will be (1-%) * answer above