Service Contract

by Donna
(Raleigh, NC)

How do you book a two-year service contract that is being paid monthly? The issue really is how does it offset the labor used if and when service is required?
Thanks!

Valuation of Services

by Simon
(Sussex, UK)

A usual charge for a sale of an advanced teaching service from School A is £250.

However a Customer performs some duties for School A (ie some cooking/cleaning/teaching a less advanced subject in the school) and therefore only pays £100 for the service usually costing £250.

Should Business A record the sale at only £100? Or should the sale be recorded at £250 with £150 allocated to the particular expense?