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When is the liability recognized

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Reference no: EM132835733

On March 2019, Concord Company enters into a contract with Moya Company to transfer a product. It is agreed that Moya Co. will pay the full amount of P50,000 in advance in April 1, 2019 and the goods will be delivered on August 31, 2019. The contract is non-cancellable. However, Moya failed to pay on April 1, but deliver payment on May 1, 2019. The product was delivered on August 31, 2019. The cost of the product is P30,000.

Problem a. When is the liability recognized? Entry

Problem b. When is the revenue recognized? Entry

Problem c. If the contract states that Nusselt will make an advance payment of P20,000 on April 1. The balance of P30,000 will be paid in full on August 31, 2019. What is the entry?

Reference no: EM132835733

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