please show your steps too thank you.

In 2019. Hulk purchased $1,500,000 of merchandise from Avengers, but only paid $100,000 to Avengers after receiving the merchandise. Hulk refused to pay anymore of the $1,500,000 purchase price of the merchandise, claiming defective production. In 2020, Avengers files a lawsuit against Hulk for the nonpayment. In 2021, Avengers is awarded $1,000,000 that Hulk pays immediately. In 2019, does Avengers report any income from the sale of the merchandise to Hulk? If yes, how much and why