HERE Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x7. In line with the contract, Mr. X subscribes for HERE’s monthly plan for 12 months and in return Mr. X receives a free cellphone from HERE. Mr. X will pay a monthly fee or P5,000. Mr. X gets the handset immediately after the contract signing.Here sells the same handset for P26,000 and the same monthly plans for P3,250 per month without the handset. Determine the revenue to be recognized by HERE on April 30, 20x7.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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HERE Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x7. In line with the contract, Mr. X subscribes for HERE’s monthly plan for 12 months and in return Mr. X receives a free cellphone from HERE. Mr. X will pay a monthly fee or P5,000. Mr. X gets the handset immediately after the contract signing.Here sells the same handset for P26,000 and the same monthly plans for P3,250 per month without the handset. Determine the revenue to be recognized by HERE on April 30, 20x7.
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