Question
CASE STUDY 15.2 PAYMENT IN ADVANCE Arizona Ltd sells goods to Barbados Ltd. The agreement between the two parties states that Barbados Ltd pays for
CASE STUDY 15.2
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.
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Evaluating The Effectiveness On Internal Audit Departments
Authors: W. Steve Albrecht, Keith R. Howe, Dennis R. Schueler, Kevin D. Stocks
1st Edition
