Accounting for Special Transactions On January 1, 2019, Castrano enters into a non-cancellable contract with Recio for the sale of an excavator for P700,000. The excavator will be delivered to Recio on April 1, 2019. The contract requires Recio to pay the P700,000 in advance on February 1, 2019 and Recio makes the payment on March 1, 2019.
Accounting for Special Transactions On January 1, 2019, Castrano enters into a non-cancellable contract with Recio for the sale of an excavator for P700,000. The excavator will be delivered to Recio on April 1, 2019. The contract requires Recio to pay the P700,000 in advance on February 1, 2019 and Recio makes the payment on March 1, 2019.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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Accounting for Special Transactions
On January 1, 2019, Castrano enters into a non-cancellable contract with Recio for the sale of an excavator
for P700,000. The excavator will be delivered to Recio on April 1, 2019. The contract requires Recio to pay the P700,000 in advance on February 1, 2019 and Recio makes the payment on March 1, 2019.
On January 1, 2019, the amount of
a. None b. P350,000 c. P700,000 d. P1,400,000
5. On January 1, 2019, the amount of revenues to be recorded:
a. None b. P350,000 c. P700,000 d. P1,400,000
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