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Timing of Revenue Recognition on Bill - and - Hold Arrangement On June 5 , Quantum Corp. sold 5 0 0 units to a manufacturer.
Timing of Revenue Recognition on BillandHold Arrangement
On June Quantum Corp. sold units to a manufacturer. Payment is due in days according to the normal credit arrangements with
this customer. However, the units will not be shipped to the manufacturer for to weeks due to an unexpected change in the
manufacturer's production schedule. Quantum Corp. has isolated the units in its storage facility and will ship the items when the
manufacturer can accommodate the items. If the units were shipped to the manufacturer on July when would Quantum Corp. recognize
revenue?
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