Question
On June 30, N, considering the customer's purchasing pace, the entity deduces that the customer will indeed reach the target of 75 units. April: 10
On June 30, N, considering the customer's purchasing pace, the entity deduces that the customer will indeed reach the target of 75 units.
April: 10 units
May: 12 units
June: 10 units
Work to be done:
- How do these new orders change the assumptions that the entity made when recognizing revenue in the first quarter?
- Calculate the adjustment to the amount of revenue that the entity will have to recognize on the first quarter revenue
- Calculate the 2nd quarter revenue based on the new assumptions.
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
