During 2010, Hamot Company Sold $30,000 of Computer Chips to a Distributor

question 87

Essay

During 2010, Hamot Company sold $30,000 of computer chips to a distributor on account. The distributor planned to sell those chips to a German company. The sold chips were shipped to a warehouse owned by Hamot and were still there on December 31, 2010. Hamot's CFO left two messages for the distributor but received no return calls. The distributor has had no prior dealings with Hamot or any other manufacturer of computer chips. None of the past due balance of $30,000 has been paid. How much sales revenue associated with this transaction would be reported on the income statement for the year ending December 31, 2010? Explain your selection.

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Definitions:

High Tech

Industries and companies that are involved in developing and producing advanced technology products and services, especially in fields like electronics, software, and biotechnology.

Richer Media

Refers to communication channels or media that are capable of facilitating more engaging and effective interpersonal communication, often through the inclusion of multiple sensory inputs or interactive features.

Equivocality

The existence of multiple and possibly conflicting interpretations or meanings within a communication process or situational context.

Multiple Cues

Several signals or indicators that collectively provide information or guidance.