Microsoft
MB-310 · Question #281
A company manufactures and installs air filtering units for industrial manufacturing plants. The air filtering units are manufactured to order. The company realized the value of the sales in the…
The correct answer is D. Create the revenue schedule so that it uses the contract terms. You've hit your limit · resets 4am (America/New_York)
Implement accounts receivable, credit, collections, and subscription billing
Question
A company manufactures and installs air filtering units for industrial manufacturing plants. The air filtering units are manufactured to order. The company realized the value of the sales in the following manner: - 25 percent at the time of the sale - 50 percent when the unit is shipped - 25 percent when the unit is installed Additionally, a three-year warranty is sold with each unit. Revenue for the warranty is recognized equally in each year the warranty covers. You need to configure revenue recognition. What should you do?
Options
- ACreate one revenue schedule with milestones.
- BCreate a new revenue schedule for each unit.
- CCreate a reallocation posting for the warranty revenue.
- DCreate the revenue schedule so that it uses the contract terms.
How the community answered
(22 responses)- A14% (3)
- B9% (2)
- C5% (1)
- D73% (16)
Explanation
You've hit your limit · resets 4am (America/New_York)
Topics
#revenue recognition#revenue schedule#contract terms#warranty revenue
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