Question

On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31. The contract required full payment of $75,000 30 days after delivery. The revenue for this contract should be

Answer 1

Answer:

recorded on March 31, 2014.

Explanation:

According to the U.S Generally Accepted Accounting Principles, the revenue should be recognized when the service is rendered to the customer, the selling price of the product is fixed, confirmation of service arrangement, and confirmability of service amount to be collected

Since in the given situation, the equipment was not delivered until March 31 so the same is to be recognized i.e March 31

Answer 2

Answer:

recorded on March 31, 2021.

Explanation:

According to the U.S Generally Accepted Accounting Principles, the revenue should be recognized when the service is rendered to the customer, the selling price of the product is fixed, confirmation of service arrangement, and confirmability of service amount to be collected

Since in the given situation, the equipment was not delivered until March 31 so the same is to be recognized i.e March 31