To obtain a new customer, a business sells merchandise to the customer for $100. Normally, the merchandise sells for $120. For this sale, the business should record revenue of $120.

Name: To obtain a new customer, a business sells merchandise to the customer for $100. Normally, the merchandise sells for $120. For this sale, the business should record revenue of $120.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Revenue should be recorded at the actual transaction price, which is $100 in this case, not the normal selling price of $120.

To Obtain a New Customer, a Business Sells Merchandise to the Customer