Which of the following transactions would require a company to record revenue
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Breanna O.
Which of these transactions would produce $10,000 of revenue in December? (check all that apply) BOC delivered $10,000 of goods in December to customers that ordered them and have 30 days to pay for them. BOC collected $10,000 of cash in December from customers who received goods in November. BOC signed a contract to deliver $10,000 of goods to a customer in January. BOC delivered $10,000 of goods in December to a customer that paid a $10,000 cash deposit in November. BOC collected a $10,000 deposit in December for goods it will ship in January.
Rashmi S.
Suppose your firm receives a $$\$ 4.1$$ million order on the last day of the year. You fill the order with $$\$ 2.9$$ million worth of inventory. The customer picks up the entire order the same day and pays $$\$ 1.5$$ million upfront in cash; you also issue a bill for the customer to pay the remaining balance of $$\$ 2.6$$ million in 30 days. Suppose your firm's tax rate is $0 \%$ (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: a. Revenues b. Earnings c. Receivables d. Inventory e. Cash
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