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  3. a company sells goods to a customer for 12,500. th

A company sells goods to a customer for 12,500. The contract stipulates that the ...

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Accounting

A company sells goods to a customer for 12,500. The contract stipulates that the
customer will pay 2,500 when the goods are delivered (and the customer obtains
control of them) and will then pay a further 10,000 three years after delivery. Assuming
an effective interest rate of 8% per annum, calculate the amount of revenue which should
be recognised at the delivery date.
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