How company ict should recognize revenue for transaction

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Company ICT operates an internet site from which it sells the products of various manufacturers. Customers select products from the website and provide credit card and shipping information. The manufacturers establish the selling price. Company ICT receives the order and authorization from the credit card company and passes the order on directly to the relevant manufacturer, who ships the product directly to the customer. Company ICT does not take delivery of or title to the goods, and has no risk of loss or other responsibility for the product. The manufacturer is responsible for all product returns, defects, and disputed credit card charges. Company ICT's fee is 20% of the sales price. It remits the remaining 80% to the manufacturer.

Problem 1: Explain how Company ICT should recognize revenue for a RM1,000 transaction.

Reference no: EM132773076

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