Paid wages of $1,000 for the current period (example). borrowed $5,000 cash from local bank using a short-term note. purchased $2,000 of equipment on credit. earned $400 of sales revenue; collected cash. received $800 of utilities services, on credit. earned $1,700 of service revenue, on credit. paid $300 cash on account to a supplier. incurred $70 of travel expenses; paid cash. earned $400 of service revenue; collected half in cash, with balance on credit. collected $100 cash from customers on account. incurred $300 of advertising costs; paid half in cash, with balance on credit.

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone