On 20 April 20X2, the garden products wholesaler Brindal delivers 600 units watering cans to a garden centre, invoiced at 45 each and payable in 60 days; the garden centre may return the cans within 45 days in exchange for a credit. The cans were held in inventory at a unit cost of 30. Brindal forecasts that 24 units cans will be returned (an estimate consistent with the constraint on variable consideration according to the case data) and measures the asset for the right to recover the products at 720, an amount given by the case. Record the delivery.
- Number of watering cans delivered
- 600
- Unit selling price
- 45
- Unit cost in inventory
- 30
- Number of cans expected to be returned
- 24
- Asset for the right to recover the products (case data)
- 720