Business, 10.10.2019 00:20, zackinator4894

The ole factory, inc. sells scented beauty products and personal care items. it is currently offering a promotion in conjunction with the launch of its new consulting business: customers can purchase a deluxe beauty kit for $500, which is the normal retail price for this item, plus get one month's free access to an online beauty consultant, which normally costs $40. the free access requires that the customer agree to default auto-renewal, cancellable at any time, with the ole factory estimating that the auto-renewal option and the appeal of the service will result in customers, on average, opting for 6 months of paid access to the online beauty consultant after the expiration of the free access. for each deluxe beauty kit sold as part of this promotion, how much revenue and deferred revenue should the ole factory recognize at the time of sale and how should it be allocated

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The ole factory, inc. sells scented beauty products and personal care items. it is currently offerin...