How much revenue should incredible tea recognise

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On January 1, 2020, Incredible Tea Inc. agrees to sell 10 boxes of tea per year to a buyer for the years 2020, 2021, and 2022. The buyer agrees to pay £2.50 per box of tea. The standalone selling price of tea on January 1, 2020, is £2.50 per box. On January 1, 2021, the buyer orders 5 additional boxes of tea, all to be delivered during 2021. The buyer agrees to pay £2.00 per box for these 5 additional boxes of tea.

If the standalone selling price of tea on January 1, 2021, is £2.50, how much revenue should Incredible Tea recognise for 2021?

Reference no: EM133070235

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