Question: On December 3 1 , 2 0 2 4 Alpha Technologies sells 1 0 new medical devices to buyers for a sales price of $

On December

31, 2024

Alpha Technologies sells

10

new medical devices to buyers for a sales price of $

1, 000, 000

each. Buyers pay

50 %

of the sales price in cash on the sale date and sign a one

-

year note for the final

50 % .

As part of the sales agreement, buyers have the right to return the device for a full refund until December

1, 2025 .

Alpha has no experience selling this device and decides that it has no reasonable basis to estimate expected returns. Under these terms what amount of revenue will alpha recognize in

2024

and

2025,

respectively, assuming no devices are returned?

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