Assume AuctionCo takes control of this used bicycle before the sale and pays $200 to the supplier. Under this assumption, how much revenue would AuctionCo recognize at the time of the sale to the customer?

Respuesta :

Answer:

$300

Explanation:

Since a customer purchase a bicycle which is already used for $300 so the same is to be recorded by the Auction co as according to the revenue recognition principle, the revenue is to be recorded when the sale is made so the $300 should be recorded at the time of selling off to the customer

Hence, the $300 is the amount to be recorded