Presented below are three revenue recognition situations. Sheridan sells goods to RTN for $1,060,000, payment due at delivery.

Presented below are three revenue recognition situations.
a. Sheridan sells goods to RTN for $1,060,000, payment due at delivery. 

b. Sheridan sells goods on account to Wildhorse for $723,000, payment due in 30 days. 

C. Sheridan sells goods to Carla Vista for $458,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $421,000.
Indicate the transaction price for each of these situations and when revenue will be recognized.

 

Solution