Help !! Revenue Recogntion

[Jason Rich]

I need help on understanding how RR works in this situation.

Contract is for 3 months (Jan-05, Feb-05,Mar-05) plus an additional
free month (Apr-05).
Monthly fees of $300 per month.
Start date is 05-JAN-05

Without the free month, The monthly fees gets recognized on this
structure.
05-JAN-05 to 31-JAN-05
01-FEB-05 to 28-JAN-05
01-MAR-05 to 31-MAR-05

Now can you help me get the amounts and dates for the monthly fees
revenue with the FREE MONTH(Apr-05).

Thanks a lot in advance and I will eagerly waiting to get your opinion
and input.

[Denise]

I believe there is no revenue recognition for April, since this is a
free month, no revenue accepted. In effect, you are providing 4 months
of contracted service for the revenue of $900, so you only need to
recognize $900. I hope this helps. Denise