The following transactions were entered into by Keppel Corp. for the current year: Sold goods to Shang Co. amounting to P 200,000. In the sales contract, there is a clause that the seller has an obligation for unsatisfactory performance, which is not governed by normal warranty provisions; Shipped machinery invoiced at P 300,000 to a destination specified by the buyer. A significant part of the transaction involves installation that has not been fulfilled by Keppel Corp.; Sold at P 500,000 a machinery to Aboitiz Corp, where Aboitiz has the right to cancel the purchases for a reason not specified in the contract of sale and the seller is uncertain about the outcome. How much should be recognized by Keppel Corp as revenue from the above transactions? * A. P 0 B. P 1, 000, 000 C. P 700, 000 D. P 500, 000

The following transactions were entered into by Keppel Corp. for the current year: Sold goods to Shang Co. amounting to P 200,000. In the sales contract, there is a clause that the seller has an obligation for unsatisfactory performance, which is not governed by normal warranty provisions; Shipped machinery invoiced at P 300,000 to a destination specified by the buyer. A significant part of the transaction involves installation that has not been fulfilled by Keppel Corp.; Sold at P 500,000 a machinery to Aboitiz Corp, where Aboitiz has the right to cancel the purchases for a reason not specified in the contract of sale and the seller is uncertain about the outcome. How much should be recognized by Keppel Corp as revenue from the above transactions? * A. P 0 B. P 1, 000, 000 C. P 700, 000 D. P 500, 000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 9Q

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