IT Services Co. provides online technology support for consumers remotely via the Internet. For a flat fee, it will scan a customer's personal computer PC) for viruses, optimize the PC's performance, and solve any connectivity problems. When a customer calls to obtain the scan services, IT Services Co. describes the services it can provide and states the price for those services. When the customer agrees to the terms stated by the representative, payment is made over the telephone. IT Services Co. then provides the customer the information needed to obtain the scan services
a. List the criteria for determining if there is a contract with a customer and determine if there is a contract in this scenario.
b. If so, when is revenue recognized?
e.g., an access code for the website) and provides the services when the customer connects to the Internet and logs onto IT Services Co.'s website, which may be that day but may also be at a future point in time.
Required:

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The Answer of IT Services Co. provides online technology support for consumers remotely via the Internet. For a flat fee, it will scan a customer's personal computer PC) for viruses, optimize the PC's performance, and solve any connectivity problems. When a customer calls to obtain the scan services, IT Services Co. describes the services it can provide and states the price for those services. When the customer agrees to the terms stated by the representative, payment is made over the telephone. IT Services Co. then provides the customer the information needed to obtain the scan services
a. List the criteria for determining if there is a contract with a customer and determine if there is a contract in this scenario.
b. If so, when is revenue recognized?
e.g., an access code for the website) and provides the services when the customer connects to the Internet and logs onto IT Services Co.'s website, which may be that day but may also be at a future point in time.
Required: