Question
On March 15, 2016, New Age Company enters into a contract to build custom machinery for Michaels Company. The contract specified a delivery date of
On March 15, 2016, New Age Company enters into a contract to build custom machinery for Michaels Company. The contract specified a delivery date of May 1. The machinery was shipped on May 15 but not delivered until May 31. The price of machinery is $125,000. How much and when should revenue from this contract be recorded?
1. The contract terms are Net30 FOB destination.
2. The contract terms are Net30 FOB shipping point.
Which terms would you prefer as a seller? Buyer? Please explain your answer.
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Deciding What To Teach And Test Developing Aligning And Auditing The Curriculum
Authors: Fenwick W. English
1st Edition
0803968329, 978-0803968325
