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According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this
According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this condition is met at the point of delivery of poods or services. The following transactions occurred in September:
f A customer paid $ for groceries at WalMart
g A contractor did $ in work for a customer, the customer was billed but has not paid as of September
h A customer purchased tickets for a concert that is to be held on October
i A landscaping company accepted payment of $ to provide services to a customer for the months of September, October and Novernber
j customers prepaid $ for a video game that releases in November
For each of the transactions, if revenue is to be recognized in September, indicate the amount. If revenue is not to be recognized in September, explain why.
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