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In: Accounting

TPO, an IP telephony company, offers various combinations of handsets and usage plans to its customers...

TPO, an IP telephony company, offers various combinations of handsets and usage plans to its customers under two-year non-cancelable contracts. It offers two handset models: a basic model that it offers free of charge (stand-alone selling price is $150); and the most recent model, which offers additional features and functionalities and for which TPO charges $300 (stand-alone selling price is $600). The entity also offers two usage plans: a 500-minute plan and an 1000- minute plan. The 500-minute plan sells for $50 per month, and the 1000-minute plan sells for $70 per month (which also corresponds to the stand-alone selling price for each plan). Assignment: Create a table showing the various revenue recognition possibilities. There are at least four combinations.

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ekkarill92 answered 2 years ago
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