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On January 1st 2016, Pilot received an order for internet service from ACME Co. ACME orders a 1Gbps plan with Pilot, paying $2,000 upfront via credit card. This payment includes $1,000 first month service payment and another $1,000 installation / activation fee. ACME’s service is month to month, with no annual contract. ACME is activated by a Pilot installation team on March 17th, 2016. What would the accounting treatment (debits and credits) associated with this transaction be: On January 1st, 2016. On March 31st, 2016. If ACME cancelled their Pilot service on February 17th, 2016 (before it’s installation), what would the proper accounting treatment (debits and credits) associated with this transaction be?
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