Simpyl Technologies, Inc., manufactures electronic equipment used to facilitate control of production processes and tracking of assets using RFID and other technologies. Since its initial public offering in 1996, the company has shown consistent growth in revenue and earnings, and the stock price has reflected that impressive performance.

Operating in a very competitive environment, Simpyl Technologies provides significant bonus incentives to its sales representatives. These representatives sell the company's products directly to end customers, to value-added resellers, and lo distributers.

Consider the four situations below. In each case, determine whether Simpyl Technologies can recognize revenue at this Lime. Describe the reasons for your judgment.

a. When selling directly to the end customer, Simpyl Technologies requires a sales contract with authorized signatures from the customer company. At the end of Simpyl's fiscal year, sales representative A asks to book revenue from a customer. The customer's purchasing manager has confirmed the intention to complete the purchase, but the contract has only one of the two required signatures. The second person is traveling and will return to the office in a few days (but after the end of Simpyl's fiscal year). The inventory to fulfill the order is sitting in Simpyl's warehouse. Can Simpyl recognize revenue at this time?

b. Sales representative B has an approved contract to deliver units that must be customized to meet the customer's specifications. Just prior to the end of the fiscal year, the uncustomized units are shipped to an intermediate staging area where they will be reconfigured to meet the customer's requirements. Can Simpyl recognize revenue on the basic, uncustomized units at this time?

c. Sales representative C has finalized an order from a value-added reseller who regularly purchases significant volumes of Simpyl's products. The products have been delivered to the customer at the beginning of the fiscal year, and Simpyl Technologies has no further responsibilities for the items. However, the sales representative (with  the regional sales manager) is still conducting negotiations with the value-added reseller as to the volume discounts that will be offered for the current year. Can Simpyl recognize revenue on the items delivered to the customer?

d. Sales representative D has finalized an order from a distributor, and the items have been delivered. However, an examination of the distributor's financial condition shows that it does not have the resources to pay Simpyl for the items it has purchased. h needs to sell those items, so the resulting proceeds can be used to pay Simpyl. Can Simpyl recognize revenue on the items delivered to the distributor?