On January 1, Nathan Company enters into a contract to provide custom-made equipment to Cushing Corporation for $150,000. The contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods. The contract specifies a delivery date of February 15 but the equipment was not delivered until February 28. The contract required full payment within 30 days after delivery. When should revenue be recognized for this contract?

On January 1, Nathan Company enters into a contract to provide custom-made equipment to Cushing Corporation for $150,000. The contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods. The contract specifies a delivery date of February 15 but the equipment was not delivered until February 28. The contract required full payment within 30 days after delivery. When should revenue be recognized for this contract?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 40P

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