Revenue Recognition-Point of Sale
Response to the following problem:
Presented below are three revenue recognition situations.
(a) Grupo sells goods to MTN for $1,000,000, payment due at delivery.
(b) Grupo sells goods on account to Grifols for $800,000, payment due in 30 days.
(c) Grupo sells goods to Magnus for $500,000, payment due in two installments: the first installment payable in 6 months and the second payment due 3 months later. Instructions Indicate how each of these transactions is reported.