Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. roan co enters into a contract with a major chain

Roan Co enters into a contract with a major chain of retail stores. The customer...

90.2K

Verified Solution

Question

Accounting

Roan Co enters into a contract with a major chain of retail stores. The customer commits to buy at least $40 of products over the next 12 months. The terms of the contract require Roan Co to make a payment of $4m to compensate the customer for changes that it will need to make to its retail stores to accommodate the products. By 31 December 2021, Roan Co has transferred products with a sales value of $9m to the customer.

Required:

How much revenue should be recognized by Roan Co in theyear ended 31 December 2021?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Match the vocabulary word with its correct definition Watergate Impeach Three Mile Island a b...

Finance
1.2K views

1. A zero-coupon British bond promises to pay GBP 100,000 in one year. The current exchange...

Basic Math
1.2K views

1. State the research hypothesis (non-directional) and the null hypothesis. Make sure you include both DV and...

Biology
1.2K views

During prophase, original maternal and paternal chromatids are matched up with ____. A. their copies...

Physics
1.2K views

Aakash Rank Booster Test Series for NEET 2020 In the figure shown if a parallel...

Physics
1.2K views

A convex lens forms an image of an object placed in its axis on a...

Physics
1.2K views

5 A satellite is revolving round the earth with 36 3448 year in f orbital...

Basic Math
1.2K views

The first term in a sequence is 18 and each term after the first is...

Calculus
1.2K views

A particle is moving along the curve f a As it passes throught the point...

Accounting
1.2K views

Knot Co. has the following activity for their most recent year...

Accounting
1.2K views

013 B D E Cost of direct...

Accounting
1.2K views

Case 7-5 Kraft Heinz Questions 1. Given the discussion in the chapter about reporting restatements...