For each of the scenarios noted in BE6-4 above, when would revenue be recognized under the earnings approach?
In BE6-4
(a) A manufacturer makes and sells farm equipment. The customer picks up the equipment upon purchase. In addition, there is a one-year warranty that will be honored by another company.
(b) A company sells books on-line and ships to the customer. Payment is made via credit cards and the company does not accept any product returns.
(c) A company provides cable television services for residential customers. The customer signs a three-year contract. The wiring was already in place from the prior homeowner.

  • CreatedSeptember 18, 2015
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