lol, and you think the cpa and auditors let them get away with that? Oh please, stop this nonsense already. You're the one that do all the spinning.
Let's see, you link the fact that they got the order for Puddlepal and Pet Sponge to a completely different part which talks about their revenue recognition to somehow spin those order become sales when the company clearly didn't make that connection. We dont even know how much "specially configured" sponges make up of their sales.
That would not fly with auditors at all. You cannot recognize rev on manufactured goods until the product ships. Do you have an example of where you have seen this type of acconting before because I don't think that is the intent.
Print no. Now if say the testing was to be paid for by the customer then units made for testing could be paid for by them when final. Then they can book that revenue as it be considered shipped if that was agreement. If they did not agree to delivery and paying until testing done then can't book order when you ship to them for testing. I think you should stop trying to be an accountant. We do not know all the details it depends on.
That IMO clearly says just for test products only while testing them.
You ship say 10 to a name household cleaner company. They get worked on adding in their cleaner products. Once they see it works they agree to buy them. Then they can book sale of the 10.
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