How much income telephone sellers should recognize


Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Telephone Sellers sells $4,900 of prepaid cards in January 2014. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Telephone Sellers for TeleExpress lines over the 3 months is $2,300. Indicate how much income Telephone Sellers should recognize in January, February, March, and April

January income?

February income?

March income?

April income?

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Accounting Basics: How much income telephone sellers should recognize
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