On September 25, Olive Oil Distributors receives an order from DeNarda Italian Supermarkets for 125 cases of extra virgin olive oil. Olive Oil accepts the order, which needs to be delivered to DeNarda's warehouse and DeNarda agrees to pay within 30 days of the receipt of the product. Each case of extra virgin olive oil contains 12 bottles at a selling price of $7.50 each. Olive Oil's cost is $3 / bottle. The shipment is received at DeNarda's warehouse on Oct 2 and DeNarda mails a cheque to Olive Oil at the end of the agreed upon payment terms. Olive Oil Distributors used a contact based approach to revenue recognition.
Instructions
a) Determine if there is a contract between Olive Oil Distributors and DeNarda Italian Supermarkets.
b) If there is a contract, record Olive Oil's entries related to these transactions.

Question

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The Answer of On September 25, Olive Oil Distributors receives an order from DeNarda Italian Supermarkets for 125 cases of extra virgin olive oil. Olive Oil accepts the order, which needs to be delivered to DeNarda's warehouse and DeNarda agrees to pay within 30 days of the receipt of the product. Each case of extra virgin olive oil contains 12 bottles at a selling price of $7.50 each. Olive Oil's cost is $3 / bottle. The shipment is received at DeNarda's warehouse on Oct 2 and DeNarda mails a cheque to Olive Oil at the end of the agreed upon payment terms. Olive Oil Distributors used a contact based approach to revenue recognition.
Instructions
a) Determine if there is a contract between Olive Oil Distributors and DeNarda Italian Supermarkets.
b) If there is a contract, record Olive Oil's entries related to these transactions.

On September 25, Olive Oil Distributors Receives an Order from DeNarda