Presented below are three revenue recognition situations. A: Groupo sells goods to MTN for $1,000,000 payment due
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Presented below are three revenue recognition situations.
A: Groupo sells goods to MTN for $1,000,000 payment due at delivery.
B: Groupo sells goods on account to Griffons for $800,000 payment due in 30 days,
C: Groupo sells goods to magnus for $500,000 payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000.
Indicate the transaction price for EACH of these situations and when revenue will be recognized.
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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