PriceCo Contract_Practice Case WIP.docx - PriceCo Contract...

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PriceCo Contract The issue when CTI can recognize revenue for the contract ASPE 3400 should be consulted for this issue: Revenue can be recognized when the following criteria met: - The rights and risk transfer to client. Performance has been achieved. Not MET. o PriceCo has the right to refuse product or request revisions. Price and Co refused the First shipment and requested product revision. o If the minimum quantity is not purchased PriceCo must pay the difference between what was ordered and the minimum purchase amount each year. - Hight certainty that CTI will receive payment from client – MET. Per contract Prce Co will ay for all product with 30 days. Also, CTI and PriceCo has the long-term contract. And PriceCo has over 500 stores. No indicators show that the payment will not be received - Reasonable assurance exists regarding the measurement of the consideration. MET No indicators that is issue with measurement Recommendation:

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