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Unformatted text preview: The devices also have been sold at a discount. However, the discount is based on the number of units purchased (or to be purchased) and does not appear to be unreasonable. Standard pricing for the devices and service are as follows: Product or Service Price Ship Finder Device $10,000 per unit, MSRP Ship Finder Service $300 per month, per unit The Lighthouse devices are made to be used exclusively with the Lighthouse services and, currently, there are no other competitors making devices that work with the Lighthouse services. Customers may cancel the service at any time. However, amounts paid related to the devices are non-refundable. Payments for the devices are due upon completion of the installation and final acceptance by the customer. Required: How should revenue be recognized for sales of both the Ship Finder devices and service? Copyright 2002 Deloitte Development LLC All Rights Reserved....
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This note was uploaded on 03/14/2010 for the course ACCOUNTING ACCT712 taught by Professor Barry during the Spring '10 term at American Academy of Art.
- Spring '10