Chapter 8, Problem 8.16BE

When to Recognize Revenue. For each scenario dotormirw whon to recognize revenue.

1. a. Top Notch Processing, inc enters into e contract to provide monthly accounting services to a customer for once year
2. b. A customer purchased a motorcycle from Bright Star Cycles for $16,000. The customer takes delivery immediately.
3. c. A customer purchased a motorcyclo from Rovup Cycles for $18,000 Prior to delivery Revup performs a custom paint job on the motorcycle that the customer required as a condition ot purchase
4. d. Seahawk Inc enters into a contract to deliver a customized accounting system to its client for $600,000 Seahawk estimates that it will take 1,000 labor hours to complete. Before completion, the customer cannot use the system.
5. e. Seahawk Inc enters into a contract to deliver an accounting system to its client for $600,000 Seahawk estimates that it will take 1.800 labor hours to complete. The customer