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In a minimum of 200 words One of the more difficult issues that companies face in recognizing revenue is determining the transaction price. In cases
In a minimum of 200 words
One of the more difficult issues that companies face in recognizing revenue is determining the transaction price. In cases where the consideration in a contract includes a variable amount, an entity should estimate the amount of consideration to which it is entitled in exchange for transferring the promised goods or services.
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Discuss the methods a company may use to estimate variable consideration and the situations in which one method may be preferred over another.
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