Answer:
a. Groupo sells goods to MTN for $1,000,000, payment due at delivery.
- transaction price = $1,000,000
- revenue recognized once the goods are delivered
No journal entry is required until goods are delivered and accepted.
b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days.
- transaction price = $800,000
- revenue recognized immediately since goods were already delivered
The journal entry:
Dr Accounts receivable 800,000
Cr Sales revenue 800,000
c. Groupo sells goods to Magnus for $500,000, 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 $464,000.
- transaction price = $480,000
- revenue recognized immediately since goods were already delivered
The journal entry:
Dr Notes receivable 500,000
Cr Sales revenue 480,000
Cr Discount on notes receivable 20,000
Answer:
Revenue recognition principle.
Explanation:
The revenue recognition principle states that revenue is recognized in the accounting period in which the performance obligation is satisfied. The cash-basis of accounting is in accordance with generally accepted accounting principles.
Answer:
Explanation:
Given
<u>Dimension</u>
Cost per 
= 0.04
Required
Determine the total cost to paint 4 walls
First, we need to calculate the area of the 4 walls.
Substitute values for Length, Breadth and Height
Cost per = 0.04.
