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Problem 1: Abbott Ltd sells goods to Costello Ltd and issues an invoice on 10 August. On that date, Costello Ltd requests that Abbott Ltd delay delivery of the goods until the 25 August when they expect to have finished preparing their site for the goods. The goods can then be delivered on 26 August. Costello Ltd pays for the goods on 12 August and accepts full responsibility for the goods from this payment date. Assuming all other revenue recognition criteria are met, on which date can Abbott Ltd recognise revenue for the sale of these goods?
Option 1: 10 August
Option 2: 25 August
Option 3: 26 August
Option 4: None of these
Option 5: 12 August
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