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Modify Profit Maintenance Agreement

Modify Profit Maintenance Agreement

Aug 6th, 2022

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Simple instructions on how to Modify Profit Maintenance Agreement

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How to Modify Profit Maintenance Agreement

5 out of 5

1 votes

Loud Company enters a two-year contract on January 1, 2017, offering a wireless plan at $65/month, which includes a smartphone for $299. The standalone price for the phone is $649, and the separate monthly service is $65. On July 1, the customer decides to downgrade to a plan offering unlimited talk and 2GB of data for $55/month, a current standalone price for this plan, remaining with 18 months left in the contract. The situation primarily revolves around revenue recognition and contract modification due to the customer's adjustment of service needs.

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