What revenue will the car dealer recognise upon delivery of the car?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 11
A car dealer sells a new car to a customer on 1 June 20X5 and promises the customer 50 litres of fuel per
month and one year's servicing, for a total price of £27,000, payable at the date of sale. The standalone
prices of these components are: car £28,000, fuel £1,200 and servicing £800.
What revenue will the car dealer recognise upon delivery of the car?
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