Essay
Transaction price
Presented below are three revenue recognition situations:
a) Bliss sells goods to Jusu for $ 10,000 payment due at delivery.
b) Bliss sells goods on account to Saanich for $ 23,000 payment due in 30 days.
c) Bliss sells goods to Nourish for $ 50,000 due in two instalments: the first instalment payable in 20 months, and the second payment due 4 months later. The present value of the future payments is $ 47,000.
Instructions
Indicate the transaction price for each of these transactions and when revenue will be recognized.
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a) $ 10,000 recognized at time of delive...View Answer
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