Question

Tulane Tires wrote a contract for a $110,000 sale to the new Garden District Tour Company. Tulane only anticipates a slightly greater than fifty percent chance that Garden will be able to pay the amounts that Tulane is entitled to receive under the contract. Upon delivery of the tires, assuming no payment has yet been made by Garden, how much revenue should Tulane recognize under U.S. GAAP?

Answer 1

Answer:

the Revenue Under US GAAP is $0

Explanation:

Revenue from the sale of goods or products should not be recognized until it is earned and realized, or realizable. Revenue is generally earned and realized, or realizable.

Therefore, the Revenue Under US GAAP is $0.