Here is the following revenue recognition situation.a. Wage Inc. sells goods to Rajab Corp for $850,000, payment due at delivery.b. Wage Inc. sells goods on account to Suro Corp for $1,050,000, payment due in 30 days.c. Wage Inc. sells goods to Syawal Corp for $480,000, payment due on two installments. Thefirst installment payable in 14 months, and the second payment due 4 months later. Thepresent value of the future payment is $445,000.Instructions:Indicate the transaction price for each of these situations and when revenue will be recognized.
Here is the following revenue recognition situation.a. Wage Inc. sells goods to Rajab Corp for $850,000, payment due at delivery.b. Wage Inc. sells goods on account to Suro Corp for $1,050,000, payment due in 30 days.c. Wage Inc. sells goods to Syawal Corp for $480,000, payment due on two installments. Thefirst installment payable in 14 months, and the second payment due 4 months later. Thepresent value of the future payment is $445,000.Instructions:Indicate the transaction price for each of these situations and when revenue will be recognized.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Here is the following revenue recognition situation.
a. Wage Inc. sells goods to Rajab Corp for $850,000, payment due at delivery.
b. Wage Inc. sells goods on account to Suro Corp for $1,050,000, payment due in 30 days.
c. Wage Inc. sells goods to Syawal Corp for $480,000, payment due on two installments. The
first installment payable in 14 months, and the second payment due 4 months later. The
present value of the future payment is $445,000.
Instructions:
Indicate the transaction price for each of these situations and when revenue will be recognized.
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