Question: For each of the following scenarios how will these circumstances

For each of the following scenarios, how will these circumstances affect the recognition of revenue under the earnings approach and under the contract-based approach?
(a) The anticipated revenues on a contract are $10 million but the associated costs cannot be estimated.
(b) There is a 60-day price protection clause requiring the seller to provide a cash refund to the buyer if the purchase price goes down.
(c) A new product is launched for which the manufacturer will allow unlimited returns.

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  • CreatedSeptember 18, 2015
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