Answered: Explain a bill-and-hold sale. When is…

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Explain a bill-and-hold sale. When is revenue recognizedin these situations?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter6: Work Sheet And Adjusting Entries For A Service Business

Section6.2: Planning Adjusting Entries On A Work Sheet

Problem 1AYU

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Question

Explain a bill-and-hold sale. When is revenue recognized
in these situations?

Expert Solution

Step 1

When the buyer is not ready to take the delivery but accepts the title and the billing, then it is referred as a bill-and-hold.

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