Chapter 18, Problem 7CA

To determine

Revenue recognition: Revenue recognition is an accounting principle that decides the process of determining and accounting for revenue. Revenue on any transaction is recognized on the performance of the obligation.

(a)

To discuss: To discuss the factors to be considered for revenue recognition.

Given information: All the information related to G&D Inc. is provided in the question document.

To determine

(b)

To determine the application of the revenue recognition factors to the G & D Inc. revenue arrangement.

Given information: All the information related to G&D Inc. is provided in the question document.

To determine

(c)

To provide: To provide the balance sheet accounts that should be used and indicate how each should be classified.

Given information: All the information related to G&D Inc. is provided in the question document.