To obtain a new customer,a business sells merchandise to the customer for $130.Normally,the merchandise sells for $260.For this sale,the business should record revenue of:

Question

Quizplus · Accepted Answer

Revenue should be recognized at the amount of consideration the business expects to receive, which in this case is $130. The fact that the merchandise normally sells for $260 is irrelevant because the business is offering a discount to this particular customer. Therefore, the revenue recorded should be the actual amount received.

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