jsally
Nov 26, 2013, 03:46 PM
Scenario-
Company has a 12/31/12 year-end
Company built a 1,000 widgets to be sold and shipped to a customers stores under a pre-arranged contract. Before the items are shipped, the buyer's president comes in and inspects the widgets, and approves on 12/15/12.
The terms of the sale are FOB shipping point which is directly from the sellers warehouse where the items were approved. The curveball here is that after the items are approved by the buyer, there is a 2 month delay from when shipping addresses are provided by the buyer causing the actual shipping date to occur 2/30/13.
In what year can the seller record the revenue?
Company has a 12/31/12 year-end
Company built a 1,000 widgets to be sold and shipped to a customers stores under a pre-arranged contract. Before the items are shipped, the buyer's president comes in and inspects the widgets, and approves on 12/15/12.
The terms of the sale are FOB shipping point which is directly from the sellers warehouse where the items were approved. The curveball here is that after the items are approved by the buyer, there is a 2 month delay from when shipping addresses are provided by the buyer causing the actual shipping date to occur 2/30/13.
In what year can the seller record the revenue?