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Analyze the revenue recognition for Company G using the following table, adhering to the principles of Realization Concept and Matching Concept: Item Quantity Sold Price

Analyze the revenue recognition for Company G using the following table, adhering to the principles of Realization Concept and Matching Concept:

Item

Quantity Sold

Price per Unit ($)

Total Revenue ($)

Product A

100

$50

$5,000

Service B

N/A

$1,000

$10,000

Total

N/A

N/A

$15,000

Revenue from the sale of Product A should be recognized at the point of sale, following the Realization Concept. Therefore, $5,000 should be recognized in the period when the products are sold, regardless of when the cash is received. Similarly, revenue from Service B should be recognized when the service is provided, adhering to the Matching Concept, ensuring that revenue is matched with the expenses incurred to generate that revenue.

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