(Solved): CED agrees to deliver 10 units to VEW for \( \$ 100 \), which cost them \( \$ 80 \) to produce. Con ...

CED agrees to deliver 10 units to VEW for \( \$ 100 \), which cost them \( \$ 80 \) to produce. Consistent with its sales policy, customer has 30 days to return unused product for a full refund, Based on historical estimates, around 5 percent of sales: are returned. Which of the following is correct? Multiple Choice CED can record receivable of \( \$ 950 \) when the items are delivered CED con record tevenue of \( \$ 1,000 \) atter 30 days. CED records refund fiability of 550 when the hems are delivered. CED records inventory of \( \$ 950 \) when the items are delwered. CeD records inventory of \( 51.000 \) when the items are detivered. The company sells goods made from its overseas factory to bulk stores locally in the country under an FOB shipping term. The company offers discount for early payment and 30 days return guarantee. The company has transacted with various stores since its inception. Revenue would be recognized when: Muntiple Choice 00ods are shipped from the warehouse. goods ace recelved by the stores. return peried has passed goods are halfway through the end destination. customer has paid. Under the percentage-of-completion method of income recognition on long-term construction contracts: Multiple Choice estimated total costs for the project cannot change once it is determined. the total cost incurring to date divided by the totai cost of the project multiplied by the contract price represents the revenue to be recorrect in the year. Income is accumulated in the "Construction-in-Pragress" inventory account. cost incurred to date is temporarily recorder in contract liability until the year end.