Scenario: Absco, Inc., is a calendar year$-$end clothing manufacturer that sells exclusively to

retailers. It engages in a large number of contracts with its customers. Absco signed a contract

with Socks Are Us to ship $100,000$ pairs of socks on December $27.$ The contract price is $$5$ per

pair, with a nonrefundable payment due upon receipt of the socks. Absco immediately delivers

the socks to Socks Are Us once the contract is signed by both parties, with the socks arriving

on December $28.$ However, Socks Are Us has not remitted payments as of December $31.$ It is

clear to Absco that it will have to offer the customer a price concession to receive any payment

at all. Absco has not had extensive dealings with Socks Are Us but estimates that it will need to

offer a $25\%$ discount.

Using the Accounting Standards Codification, Section ASC $606$ as a source from Revenue From

Contracts With Customers $($Topic $606),$

Identify whether Absco should recognize any revenue related to the transaction scenario in

the current year.

Calculate how much.