Question: Verlo Ltd recently made a 100 000 sale to a customer
Verlo Ltd. recently made a $100,000 sale to a customer. The terms of the sale agreement permit the customer to pay the $100,000 in two years. The customer doesn't have to pay any interest. The revenue recognition criteria were met at the time of delivery of the product, so Verlo Ltd. recognized $100,000 of revenue. Evaluate Verlo Ltd.'s accounting for this sale.
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