Question: In late December 2017 Kakisa Inc made a large shipment

In late December 2017 Kakisa Inc. made a large shipment of goods to a new customer. Kakisa had been in negotiations with the customer for some time and the final agreement was an important step in its planned expansion into western Canada. The agreement was unusual in that it allowed the customer to return any and all of the goods shipped at any time up until March 1, 2018. The customer isn't required to pay for the goods until March. Kakisa recognizes its revenue when goods are delivered to the customer and normally provides 30 days to pay. Kakisa's year-end is December 31.

How should Kakisa recognize the revenue from the sale to the new customer?

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  • CreatedFebruary 26, 2015
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