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Revenue recognition sale of goods In each of the following situations, state at which date, if any, revenue will be recognised. A contract for the
Revenue recognition sale of goods
In each of the following situations, state at which date, if any, revenue will be recognised.
- A contract for the sale of goods is entered into on 1 May 2022. The goods are delivered on 15 May 2022. The buyer pays for the goods on 30 May 2022. The contract contains a clause that entitles the buyer to rescind the purchase at any time. This is in addition to normal warranty conditions.
- A contract for the sale of goods is entered into on 1 May 2022. The goods are delivered on 15 May 2022. The buyer pays for the goods on 30 May 2022. The contract contains a clause that entitles the buyer to return the goods up until 30 June 2022 if the goods do not perform according to their specification.
- A contract for the sale of goods is entered into on 1 May 2022. The goods are delivered on 15 May 2022. The contract contains a clause that states that the buyer shall pay only for those goods that it sells to a third party for the period ended 31 August 2022. Any goods not sold to a third party by that date will be returned to the seller.
- Retail goods are sold with normal provisions allowing the customer to return the goods if the goods do not perform satisfactorily. The goods are invoiced on 1 May 2022 and the customer pays cash for them on that date.
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