Assume McDonald’s enters into a contract to sell Billy Bear dolls for Toys4U Stores. Based on the contract,McDonald’s displays the dolls in selected stores. Toys4U is not paid until the dolls have been sold by McDonald’s, and unsold dolls are returned to Toys4U.Required:Determine whether Toys4U has satisfied its performance obligation when it delivers the dolls to McDonald’s.Explain your answer.Cutler Education Corporation developed a software product to help children under age 12 learn mathematics. Thesoftware contains two separate parts: Basic Level (Level I) and Intermediate Level (Level II). Parents purchaseeach level separately and are eligible to purchase the access code for Level II only if their children pass the LevelI exam.Kerry purchases the Level I software at a price of $50 for his son, Tom, on December 1. Suppose Tom passedthe Level I test on December 10, and Kerry immediately purchased the access code for Level II for an additional$30. Cutler provided Kerry with the access code to Level II on December 20
Assume McDonald’s enters into a contract to sell Billy Bear dolls for Toys4U Stores. Based on the contract,
McDonald’s displays the dolls in selected stores. Toys4U is not paid until the dolls have been sold by McDonald’s, and unsold dolls are returned to Toys4U.
Required:
Determine whether Toys4U has satisfied its performance obligation when it delivers the dolls to McDonald’s.
Explain your answer.
Cutler Education Corporation developed a software product to help children under age 12 learn mathematics. The
software contains two separate parts: Basic Level (Level I) and Intermediate Level (Level II). Parents purchase
each level separately and are eligible to purchase the access code for Level II only if their children pass the Level
I exam.
Kerry purchases the Level I software at a price of $50 for his son, Tom, on December 1. Suppose Tom passed
the Level I test on December 10, and Kerry immediately purchased the access code for Level II for an additional
$30. Cutler provided Kerry with the access code to Level II on December 20
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