Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $1,060,000, payment due at delivery. (b) Groupo sells goods on account to Grifols for $723,000, payment due...


Presented below are three revenue recognition situations.
























(a)
Groupo sells goods to MTN for $1,060,000, payment due at delivery.

(b)
Groupo sells goods on account to Grifols for $723,000, payment due in 30 days.

(c)
Groupo sells goods to Magnus for $458,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $421,000.




Indicate the transaction price for each of these situations and when revenue will be recognized.




































(a)

(b)

(c)

Transaction Price

$enter a dollar amount$enter a dollar amount$enter a dollar amount

Revenue will be recognized

choose when revenue will be recognized                                                           At the point of saleAt deliverychoose when revenue will be recognized                                                           At the point of saleAt the time of paymentchoose when revenue will be recognized                                                           At the point of saleAt the time of payment



Jun 08, 2022
SOLUTION.PDF
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?