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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text: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
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