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Since the ownership of the merchandise has not transferred to the customer, we would still be responsible for the material until the product is shipped.
Since the ownership of the merchandise has not transferred to the customer, we would still be responsible for the material until the product is shipped. If something were to happen to this material in the two weeks before shipping it, we would be responsible for it, not the purchaser. While it is a huge sale of $1M and we'd like to have it on the books for Dec 31, we should recognize the revenue once the ownership has changed to the purchaser.
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