On June 5, Quantum Corp. sold 500 units to a manufacturer. Payment is due in 30...
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On June 5, Quantum Corp. sold 500 units to a manufacturer. Payment is due in 30 days according to the normal credit arrangements with this customer. However, the units will not be shipped to the manufacturer for 2 to 6 weeks due to an unexpected change in the manufacturer's production schedule. Quantum Corp. has isolated the units in its storage facility and will ship the items when the manufacturer can accommodate the items. If the units were shipped to the manufacturer on July 6, when would Quantum Corp. recognize revenue? On June 5, Quantum Corp. sold 500 units to a manufacturer. Payment is due in 30 days according to the normal credit arrangements with this customer. However, the units will not be shipped to the manufacturer for 2 to 6 weeks due to an unexpected change in the manufacturer's production schedule. Quantum Corp. has isolated the units in its storage facility and will ship the items when the manufacturer can accommodate the items. If the units were shipped to the manufacturer on July 6, when would Quantum Corp. recognize revenue?
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ANSWER In accounting revenue recognition is the process of recording revenue in the financial statem... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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