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On December 31, 2010, Gledhill, Inc

Question 83

Multiple Choice

On December 31, 2010, Gledhill, Inc.sells production equipment to Crosse Manufacturing for €480,000.Gledhill includes a 1-year warranty service with the sale of all its equipment.The customer receives and pays for the equipment on December 31, 2010.Gledhill estimates the prices to be €488,000 for the equipment and €12,000 for the warranty.How much revenue related to the warranty should Gledhill recognize for the year 2010?


A) €-0-.
B) €12,000.
C) €11,803.
D) €11,520.

Correct Answer:

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