E3-18 Determining when to recognize revenue AICPA ADAPTED On October 1, 2018, Bullseye Company sold 250,000 gallons of diesel fuel to Schmidt Co. at $3 per gallon. On November 8, 2018, 150,000 gallons were delivered; on December 27, 2018. another 50,000 gallons were delivered; and on January 15, 2019, the remaining 50,000 gallons were delivered. Payment terms are 10% due on October 1, 2018, 50% due on first delivery; 20% due on the next delivery; and the remaining 20% due on final delivery. Required: 1. Do each of the three deliveries represent a distinct performance obligation, or is there a single performance obligation requiring three deliveries? 2. What amount of revenue should Bullseye recognize from this sale during 2018