Jiji Co. is evaluating a sales agreement it has just made with a customer in light of the new revenue

recognition standard. The agreements significant features are below:

Both parties have signed the agreement, which is cancelable at any time by either.

The agreement is silent as to acceptable methods of payment or payment due dates.

A sales price of $10 per unit is specified but not the quantities to be delivered or the date shipment is

to be madeboth are described in the agreement as to be determined.

Jiji has never transacted with this customer and has entered into the agreement as a way to begin

building a business relationship. Given their lack of shared history, Jiji is uncertain as to whether the

customer will prove creditworthy.

Based on the above information, Jijis agreement clearly does not qualify for revenue recognition

under FASB ASC 606.

RequiredIdentify any two of the several conditions present in the above arrangement indicating that

under FASB ASC 606, no contract exists.