michaelwishon
Member
We are looking to include the sale of an extended warranty on our products however we are only able to recognize a portion of the revenue from the sale of the warranty each month.
Ex. If we sell a product for $100 with a 12 month extended warranty for $60, we can recognize the sale of the asset for $100 however we can only recognize 1/12 of the extended warranty revenue each month ($5). Customer would pay the entire $160 at point of sale.
Any thoughts/suggestions/white papers would be greatly appreciated.
Thanks
Michael
Ex. If we sell a product for $100 with a 12 month extended warranty for $60, we can recognize the sale of the asset for $100 however we can only recognize 1/12 of the extended warranty revenue each month ($5). Customer would pay the entire $160 at point of sale.
Any thoughts/suggestions/white papers would be greatly appreciated.
Thanks
Michael