In the case of goods sold on layaway,
A)the seller should not recognize revenue until the products are delivered to the customer.
B)the cash received to date should be recognized as an asset until merchandise is delivered to the customer.
C)revenue should be recognized under the installment sales method.
D)the seller should recognize revenue before products are delivered to the customer.

Question

Quizplus · Accepted Answer

Revenue recognition for layaway sales occurs when the goods are delivered to the customer, as the risks and rewards of ownership are transferred at that point.

In the Case of Goods Sold on Layaway