Revenue Recognition
The following information describes the company’s sales for the year:
(a) A sale for $100,000 was made on March 23. As of the end of the year, all work associated with the sale has been completed. Unfortunately, the customer is a significant credit risk and the collection of the cash for the sale is very uncertain. No cash has been collected as of the end of the year.
(b) A sale for $130,000 was made on July 12. The $130,000 cash for the sale was collected in full on July 12. The work associated with the sale has not yet begun but is expected to be completed early next year.
(c) A sale for $170,000 was made on November 17. No cash has been collected as of the end of the year, but all of the cash is expected to be collected early next year. As of the end of the year, all of the work associated with the sale has been completed. How much revenue should be recognized for the year?