Don Company sell equipment service contracts that cover a two year period.

The sale
price of each contract is P600. Don's past experience is that, of the total pesos spent
for repairs on service contracts, 40% is incurred evenly during the first contract year
and 60% evenly during the second contract year. Don sold 1,000 contracts evenly
throughout 2011. What amount should Don report as deferred service revenue?Single
line text.

(2 Points)