To demonstrate your ability to determine when to recognize revenue, complete the following exercises from your Intermediate Accounting text:
- Chapter 5, “Judgment Case 5-5, Satisfying performance obligations,” pages 289-290.
For each scenario:
- Provide your answer and, if applicable, show the process you used to obtain your answer.
- In 1-2 well-developed paragraphs, provide an explanation of why the seller should recognize revenue over time or at the point of completion.