PAYMENT IN ADVANCE Arizona Ltd sells goods to Barbados Ltd. The agreement between the two parties states

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PAYMENT IN ADVANCE Arizona Ltd sells goods to Barbados Ltd. The agreement between the two parties states that Barbados Ltd pays for the goods in advance of delivery which will occur in 12 months’ time. The control of the goods pass to Barbados Ltd at the date of delivery. Barbados Ltd pays $40 000 to Arizona Ltd on 1 July 2019. Arizona Ltd delivers the goods to Barbados Ltd on 1 July 2020. Required Advise Arizona Ltd on how to appropriately recognise the revenue from this transaction. CASE STUDY

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Financial Reporting

ISBN: 978-0730363361

2nd Edition

Authors: Janice Loftus ,Ken Leo ,Sorin Daniliuc ,Belinda Luke ,Hong Nee Ang ,Karyn Byrnes

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