Business Finance Homework Help

Business Finance Homework Help. Revenue Recognation

Larkspur Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.

Larkspur Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $506. The standalone selling price of the tablet is $234 (the cost to Larkspur Company is $167). Larkspur Company sells the Internet access service independently for an upfront payment of $324. On January 2, 2017, Larkspur Company signed 90 contracts, receiving a total of $45,540 in cash.2.Larkspur Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $612. Larkspur Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $155. Larkspur Company signed 190 contracts for Larkspur Bundle B on July 1, 2017, receiving a total of $116,280 in cash.

Just answer on the bottom and show your calculation on the word document.

Business Finance Homework Help

 
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