A contracting company divides each of its orders into five stages: (1) on order; (2) on despatch;
Question:
A contracting company divides each of its orders into five stages: (1) on order; (2) on despatch; (3) on installation; (4) on commissioning; and (5) on completion of a 12-
month warranty period. Assume that an order for Contract A (worth £100,000) is signed on 1 January 2004 and the warranty period ends on 31 December 2006. In which accounting period or periods would you treat the £100,000 as revenue (i.e. sales)?
Would it be appropriate to apportion it over the three years of the contract?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: