In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station) At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery Assume that the additional term is a prospective modification to the original contract How much revenue will be recognized on the contract for the year?
In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station) At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery Assume that the additional term is a prospective modification to the original contract How much revenue will be recognized on the contract for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station) At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery
Assume that the additional term is a prospective modification to the original contract How much revenue will be recognized on the contract for the year?
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