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Poetry Company Offers Three Payment Plans On Its Twelve
Poetry Company Offers Three Payment Plans On Its Twelve
Information on the three plans and the number of children enrolled in each plan for
the September 1, 20x1 through August 31, 20x2 contract year follows: Initial payment
Monthly fee Number of per child per child children #1 P50,000 - 15 #2 P20,000 3,000
12 #3 - 5,000 9 Poetry received P990,000 of initial payments on September 1, 20x1,
and P324,000 of monthly fees during the period Sept. through Dec. 31, 20x1. What
amount should be reported as deferred revenue December 31, 20x1?