How much revenue should yong recognize at the end of the day

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Question - Yong tells you that today he delivered $1,000 worth of watches to a University bookstore that has been a long time client. They will pay him in a week.

He also received two big orders, one for $700 worth of watches to an established customer and another for $4,000 to a brand new customer in another country where he has never done business. The new customer sent payment in advance. Yong will be able to ship both orders out in the next week. He just needs to finish making a couple of watches for the established customers. He already has all the watches made for the new customer, but wants to inspect them one more time and has to figure out how to ship to that country.

How much revenue should Yong recognize at the end of the day?

Reference no: EM132621108

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