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Details of two of Clooney's transactions in the year ended 31 August 20X7 are as follows:(1) Clooney has sold a food processing machine to a customer, Pitt. The machine is intransit to Pitt who will not pay for the machine until it is safely delivered andinstalled.(2) Clooney has sold a number of food mixers to another customer, Damon, on credit.These have been delivered but Damon has not yet paidFor which of the transactions should sales revenue be recognised?A (1) onlyB (2) onlyC Both (1) and (2)D Neither (1) nor (2)
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