Service Contract Bookkeeping Question

by Donna
(Raleigh, NC)

Service Contract

Service Contract

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!

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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?

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