medium · Financial Accounting revenue-recognition
A travel website acts as an intermediary, allowing customers to book hotel rooms. The website collects 1,000 from a customer, keeps a100 commission, and remits $900 to the hotel. The hotel is responsible for fulfilling the service and setting the room price.
Under ASC 606, what is the website's revenue?
- $900
- $0
- $100
- $1,000
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