Presented below are three revenue recognition situations. a. Sandhill sells goods to ATN for $920,000, payment due at delivery. b. Sandhill sells goods on account to Cullumber for $809,000, payment due in 30 days. C. Sandhill sells goods to Blossom for $522,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $484,700. Indicate the transaction price for each of these situations and when revenue will be recognized. (a) (b) Transaction price Revenue will be recognized At delivery At the point of sale > +A (c) At the point of sa

Presented below are three revenue recognition situations. a. Sandhill sells goods to ATN for $920,000, payment due at delivery. b. Sandhill sells goods on account to Cullumber for $809,000, payment due in 30 days. C. Sandhill sells goods to Blossom for $522,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $484,700. Indicate the transaction price for each of these situations and when revenue will be recognized. (a) (b) Transaction price Revenue will be recognized At delivery At the point of sale > +A (c) At the point of sa

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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Presented below are three revenue recognition situations. a. Groupo sells goods to MTN for $1,000,000, payment due at delivery. b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days. c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000. Indicate the transaction price for each of these situations and when revenue will be recognized.
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1. please provide solution in good accounting form. thank you!
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