a- Alaadel Company offers contract AZ301, which is comprised of a free-standing machine plus installation it...

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a- Alaadel Company offers contract AZ301, which is comprised of a free-standing machine plus installation it to a customer for a total price $6000. On a standalone basis, the machine sells for $5000 (cost $4000), and Alaadel Co. estimates that the standalone selling price of the installation service is $3000. Note that installation service can be performed by other companies. On June 10, 2020, Alaadel Co. signed AZ301 contract and delivered a machine to Alfatah Co. The customer paid the contract price in cash in the same date. On July 5, 2020, the installation service was performed. (5 marks) Instructions: 1- Analyze each transaction for its five steps of revenue recognition process, write your answer in a table as follows: Step4: Step1: Identify the contract with Step3: Determine Step5: Allocate the Step2: Identify the separate performance obligations in Recognize revenue when the transaction price to the customers. each performance transaction price separate performance obligation the contract obligations is satisfied Transaction number a- Alaadel Company offers contract AZ301, which is comprised of a free-standing machine plus installation it to a customer for a total price $6000. On a standalone basis, the machine sells for $5000 (cost $4000), and Alaadel Co. estimates that the standalone selling price of the installation service is $3000. Note that installation service can be performed by other companies. On June 10, 2020, Alaadel Co. signed AZ301 contract and delivered a machine to Alfatah Co. The customer paid the contract price in cash in the same date. On July 5, 2020, the installation service was performed. (5 marks) Instructions: 1- Analyze each transaction for its five steps of revenue recognition process, write your answer in a table as follows: Step4: Step1: Identify the contract with Step3: Determine Step5: Allocate the Step2: Identify the separate performance obligations in Recognize revenue when the transaction price to the customers. each performance transaction price separate performance obligation the contract obligations is satisfied Transaction number

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Answer 1 Transaction Number a Step 1 Identify the contract wi... View the full answer