Question
On December 31, 2022, XYZ Ltd. signed a contract to sell goods worth $50,000 to ABC Ltd. with delivery scheduled for March 31, 2023. The
On December 31, 2022, XYZ Ltd. signed a contract to sell goods worth $50,000 to ABC Ltd. with delivery scheduled for March 31, 2023. The contract price is fixed and determinable. The cost of the goods is $35,000. XYZ Ltd. paid $3,000 in January 2023 for advertising related to the sale. On March 31, 2023, the goods were delivered and payment of $50,000 was received. What is the amount of revenue that XYZ Ltd. should recognize for this transaction in the financial statements for the year ending December 31, 2022? What accounts will be affected, and how?
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
