Transaction Price Presented Below Are Three Revenue Recognition Situations

question 16

Essay

Transaction price
Presented below are three revenue recognition situations:
a) Bliss sells goods to Jusu for $ 10,000 payment due at delivery.
b) Bliss sells goods on account to Saanich for $ 23,000 payment due in 30 days.
c) Bliss sells goods to Nourish for $ 50,000 due in two instalments: the first instalment payable in 20 months, and the second payment due 4 months later. The present value of the future payments is $ 47,000.
Instructions
Indicate the transaction price for each of these transactions and when revenue will be recognized.

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Definitions:

IRB Committee

A group tasked with reviewing and overseeing research involving human participants to ensure ethical standards are met.

Informed Consent

A legal and ethical requirement where a participant agrees to partake in research after understanding its risks and benefits.

Potential Benefits

The possible advantages or positive outcomes that may result from a specific action, project, or research.

Humanitarian Benefits

Positive impacts or aid provided to individuals or communities in crisis, aimed at saving lives, alleviating suffering, and maintaining human dignity.