Office Jungle Company sells plants and provides plant watering and pruning services to office clients. On February 1, Office Jungle entered into a contract with a client that included delivery of 12 ficus trees and 2 years of watering and pruning service. The trees were delivered to the client the same day. Which of the following is true? Revenue for the trees is recognized on February 1, and no revenue will be recognized for the watering and pruning service until the end of year 2. Revenue for the trees and watering and pruning services will be recognized on February 1. Office Jungle Company should not recognize any revenue until the end of year 2. Revenue for the trees is recognized on February 1, and revenue for the watering and pruning service is recognized over the 2 years as those services are performed. PAZARTES SHALGA. | P sa k J Ta SE I Date= CAN C G Serent CA W DANCE VALEN Se (D TO PE E Kalen

Office Jungle Company sells plants and provides plant watering and pruning services to office clients. On February 1, Office Jungle entered into a contract with a client that included delivery of 12 ficus trees and 2 years of watering and pruning service. The trees were delivered to the client the same day. Which of the following is true? Revenue for the trees is recognized on February 1, and no revenue will be recognized for the watering and pruning service until the end of year 2. Revenue for the trees and watering and pruning services will be recognized on February 1. Office Jungle Company should not recognize any revenue until the end of year 2. Revenue for the trees is recognized on February 1, and revenue for the watering and pruning service is recognized over the 2 years as those services are performed. PAZARTES SHALGA. | P sa k J Ta SE I Date= CAN C G Serent CA W DANCE VALEN Se (D TO PE E Kalen

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 7RE: VolleyElite runs a volleyball program consisting of camps, tournaments, and specialized coaching....

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