Chapter 5, Problem 5.10Q

To determine

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

• Variable amount of consideration and the restriction on its recognition
• Rights for sales return
• Whether the seller is acting as a principle or an agent
• Time value of money
• Payments by the seller to the customer

To estimate:  The variable consideration included in transaction price.