medium · Financial Accounting revenue-recognition
Vanguard Platforms acts as an intermediary for software developers. Vanguard collects $10,000 from a customer for a license, retains a $1,500 commission, and remits $8,500 to the developer. Vanguard is not responsible for the software's functionality, does not bear inventory risk, and the developer sets the price.
How much revenue should Vanguard recognize under ASC 606?
- $0
- $1,500
- $8,500
- $10,000
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