Gastronova, a manufacturer of kitchen robots, delivers 300 robots to a network of dealers at the end of the reporting period. The terms provide that: the dealers pay a 10% deposit on delivery; the balance is only due on resale to the end consumer; Gastronova can transfer unsold robots from one dealer to another; unsold robots can be returned to it at any time, the deposit then being refunded. Management wishes to recognise revenue on delivery, arguing that the robots are physically at the dealers' premises and that the deposit has been collected. Write a judgement memo.
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