A contracting company divides each of its sales into five stages: (1) on order; (2) on despatch;
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A contracting company divides each of its sales into five stages: (1) on order; (2) on despatch; (3) on installation; (4) on commissioning; and (5) on completion of a 12-
month warranty period.
Assume that an order for Contract A (worth £100 000) is signed on 1 January 2008 and the warranty period ends on 31 December 2010. In which year or years would you treat the £100 000 as revenue (i.e. sales)?
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