Manufacturing sale with multiple POs- Participant.docx

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Manufacturing sale with multiple performance obligations - Case Study Contract terms / transaction facts: Scenario 1: Clear Glass Windows (CGW) is a window manufacturer who sells standard sized windows. Windows are sold to big box retailers for $900 per window on a standalone basis and to all other retailers and builders for $1,100 per window on a standalone basis. The seals on the windows include a standard one year warranty, and an additional 10 year extended warranty can be purchased for $150 per window. ABC Builders (ABC) (a big box retailer) has a Master Service Agreement (MSA) in place with CGW which states various terms and conditions, including the standard sales price per window. On January 1, 2017, ABC initiated a purchase order to purchase 100 windows at $900 per window. The purchase order stipulated that ABC is eligible for a 2% discount if they paid within 30 days of the invoice date. Payments are due within 60 days of the invoice date. Historically, ABC has taken advantage of payment discounts offered by CGW.
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