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II. For each of the following situations based on SAB No. 101, indicate the audit evidence that should be obtained to determine whether revenue should
II. For each of the following situations based on SAB No. 101, indicate the audit evidence that should be obtained to determine whether revenue should be recognized or not in the current period:
Best Products is a retailer of appliances that offers layaway sales to its customers twice a year. Best retains the merchandise, sets it aside in its inventory, and collects a cash deposit from the customer. The customer signs an installment note at the time the initial deposit is received, but no payments are due until 30 days after delivery.
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