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Problem 1: Company A enters into a contract with Company B to deliver goods with a fair value of $350 000. The contract stipulates that Company B pays for these goods through the provision of services with a fair value of $370 000.Company C enters into a contract with Company D to deliver 1 000 scented candles at a unit price of $20. At the inception of the contract, as incentive Company C provides Company D with a $500 credit against future contracts for the purchase of scented candles. What amount of revenue is recognised by Company A and Company C in respect of these contracts?
Option 1: $350 000 and $19 500
Option 2: $350 000 and $20 000
Option 3: $370 000 and $19 500
Option 4: $370 000 and $20 000
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