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What amount of revenue should campus cellular recognize

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Reference no: EM132812827

Problem 1: Campus Cellular provides cell phones and 1 year of cell service to students for an upfront, nonrefundable fee of $300 and a usage fee of $5 per month. Students may renew the service for each year they are on campus (on average, students renew their service one time). What amount of revenue should Campus Cellular recognize in the first year of the contract?

a) Campus Cellular recognizes revenue of $200 in both year 1 and year 2.

b) Campus Cellular recognizes revenue of $210 in both year 1 and year 2.

c) Campus Cellular recognizes revenue of $200 in year 1 and $210 in year 2.

d) Campus Cellular recognizes revenue of $210 in year 1 and $200 in year 2.

Reference no: EM132812827

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