On January 1, 2010, Bissel Co.sold land that cost $90,000 for $120,000, receiving a note bearing interest at 10 percent.The note will be paid in three annual instalments of $48,255 starting on December 31, 2010.Assuming that collection of the note is very uncertain, how much revenue from this sale should Bissel recognize in 2010?

Question

Quizplus · Accepted Answer

Since the collection of the note is very uncertain, Bissel should not recognize any revenue until the cash is actually received.