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A manufacturing company receives an advance payment of $500,000 for goods to be delivered over the next 5 months. How much revenue should be recognized

A manufacturing company receives an advance payment of $500,000 for goods to be delivered over the next 5 months.

  1. How much revenue should be recognized monthly?
  2. How much revenue will be recognized after 2 months?
  3. What is the unrecognized revenue after 3 months?
  4. How should the advance payment be recorded initially?

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