Business
Business, 01.11.2019 02:31, bella51032

Gil is a baxley co. salesman desperate to make quota by the end of 2018. on the afternoon of december 31, 2018, he convinces a longtime customer with excellent credit to sign a contract to accept delivery of baxley co.'s widgetron deluxe. gil promises the customer a deep discount off the list price that they can 'hash out later' if the customer is 100 % happy with the product. gil does not tell the customer that the company's policy in such cases is to offer the maximum discount of 30%. the customer states he will have to consult an astrologer and a groundhog to determine if he is happy with the product. gil oversees the delivery that evening of the widgetron deluxe. should the revenue from this sale be recognized in 2018? why or why not? a. the revenue should be recognized because the product shipped and the customer has excellent credit. b. the revenue should not be recognized because the seller lacks sufficient information to estimate returns, so the constraint on recognition of variable consideration applies. c. the revenue should be recognized because there is a binding contract to accept delivery of the goods. d. the revenue should not be recognized because revenue should be recognized over time.

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Gil is a baxley co. salesman desperate to make quota by the end of 2018. on the afternoon of decembe...

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