Explain a bill-and-hold sale. When is revenue recognizedin these situations?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 2DQ: Explain when revenue may be recognized and give an example.
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Question
Explain a bill-and-hold sale. When is revenue recognized
in these situations?
Expert Solution
Step 1
When the buyer is not ready to take the delivery but accepts the title and the billing, then it is referred as a bill-and-hold.
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