Montreal Machinery (MM) Produces and Sells Computer-Controlled Machines That Monitor

question 57

Multiple Choice

Montreal Machinery (MM) produces and sells computer-controlled machines that monitor and control the temperature and humidity in the production of candies.After they deliver and install the product they spend a month adjusting it to the customer's needs and environment and training their staff.They also provide a two-year warranty on the machines.When would be an appropriate time for MM to recognize the revenue from the sale of a machine?

• A)On delivery to the customer if they can estimate the cost of the warranty.
• B)After the month installation period.
• C)After the two-year warranty has expired.
• D)After the month installation period, if they can estimate the cost of the warranty.