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5. 5] F1 sells its lumber to local building centres as well as through agents. F1 is paid for the lumber 30 days
after delivery. FI uses an agent to sell its lumber overseas. Fl pays a set fee to the agent. The agent sells the
lumber and deposits the money electronically in PPS account net of its fee. 4-
after delivery. FI uses an agent to sell its lumber overseas. Fl pays a set fee to the agent. The agent sells the
lumber and deposits the money electronically in PPS account net of its fee. 4-
Revenue recognition – steps and journal entries
