When will Ford recognize revenue in the reservation, order, and delivery process for its currently sold$-$out Ford F$-150$ Lightning electric truck?

The Ford Motor Company $($NYSE: E$.)$ is selling an electric version of its F$-150$ pickup truck, the F$-150$ Lightning electric truck. Ford cannot keep up with demand; it has taken orders for its entire $2022$ production capacity and has closed orders for the $2022$ model. Ford has not yet begun taking reservations for the $2023$ model. The F$-150$ Lightning order and sales process consists of the following steps:

The prospective buyer must first purchase a $$100$ refundable reservation that earns them the right to order a vehicle at a future unspecified date. The $$100$ is a deposit on the future purchase.;

Ford then sends the reservation holder an invitation to place an order.

Ford sells the reservations and takes orders directly online, but the buyer must designate a local dealership to deliver the vehicle, In addition to the $$100$ refundable reservation fee, assume that the customer must make a $$2,000$ deposit at the time of order and will pay for the vehicle upon delivery with cash, dealer financing, or a combination of cash and financing.

View a quick tutorial video about revenue recognition at this link

Basic revenue recognition: Financial

Revenue recognition example #$1$

Kent Coffee sells a $$25$ gift card to Ja'Nae Smithers on October $3.$ Ja'Nae uses $$10$ of the gift card on November $2$ and the other $$15$ on December $8.$

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