Four conditions must be met before revenue should be recognized. In each of the following cases, tell

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Four conditions must be met before revenue should be recognized. In each of the following cases, tell which condition has not been met:
a. Company Alpha accepts a contract to perform services in the future for $4,000.
b. Company Beta ships products worth $6,000 to another company without an order from the other company but tells the company it can return the products if it does not sell them.
c. Company Centric performs $20,000 of services for a firm with financial problems.
d. Company Radiant agrees to work out a price later for services that it performs for another company.

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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