Question

Submit to complete this assessment Question 23 of estion 23 1 points Save A Dowol Manufacturing contracts to produce bumper cars for Five Flags Parks Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $12.000 to Dowell. Dowel believes that if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As of December 31, 2020, the job is to complete. How much revenue should Dowel recognize in 2020 for this contract 512.000 O $30.000 O $48.000 5 7 9 delete R т Y U O P ot 간 F G H к L C V B N 3 V V. se ch command option

Answer 1

a). $0

Revenue should D recognize in 2020 for this contract = $0

The revenue under the performance obligation is recognized only when the titles of goods passes to the buyer. Hence, before recognizing revenue the D should wait until the completion of contract. Therefore, the revenue should D recognize in 2020 for this contract is $0.

Revenue should D recognize in 2020 for this contract = $0

The revenue under the performance obligation is recognized only when the titles of goods passes to the buyer. Hence, before recognizing revenue the D should wait until the completion of contract. Therefore, the revenue should D recognize in 2020 for this contract is $0.