Verlo Ltd. recently made a $100,000 sale to a customer. Terms of the sale agreement permit the

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Verlo Ltd. recently made a $100,000 sale to a customer. Terms of the sale agreement permit the customer to pay the $100,000 in two years. The customer will not have to pay any interest. If Verlo Ltd. recognizes the revenue in the current period, why should the amount of revenue recorded be less than $100,000? Explain.

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