Leonard Co. sells $600,000 (cost $480,000) of vehicles to a local car dealer, Carlson Inc. The vehicles were ready to go when the contract was signed on May 31, 2021 and title passed to Carlson at that date. Carlson was undergoing a significant renovation to its dealership at the time and as a result, Carlson requested that Leonard retain the vehicles at its warehouse until July 15, 2021. Payment was made in full on June 30, 2021. At what date can Leonard Co. recognize the revenue relating to the sale of the vehicles?

Leonard Co. sells $600,000 (cost $480,000) of vehicles to a local car dealer, Carlson Inc. The vehicles were ready to go when the contract was signed on May 31, 2021 and title passed to Carlson at that date. Carlson was undergoing a significant renovation to its dealership at the time and as a result, Carlson requested that Leonard retain the vehicles at its warehouse until July 15, 2021. Payment was made in full on June 30, 2021. At what date can Leonard Co. recognize the revenue relating to the sale of the vehicles?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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