Question
Isha first time supplied the goods Pandey Co. Isha Co (follow ASPE) has provided the territory a two-winter guarantee that it will replace any bins
Isha first time supplied the goods Pandey Co. Isha Co (follow ASPE) has provided the territory a two-winter guarantee that it will replace any bins that are broken or damaged due to weather conditions. The contract price is $600,000 and the bins cost $510,000. The revenue was recognized in the third quarter. Isha expects payment for the bins within 90 days of the end of the quarter. Isha recognized the revenue in the third quarter. Does Isha recognize the revenue 600,000-510,000= 90,000 when 2 year gurantee is exists. How Isha shows income statemnt and balace sheet in accordance with ASPE.
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