ANSWER 13

The fact that the vendor has substantial past experience of providing a price concession of approximately 20% of the original sales price, and current market conditions suggest a similar price concession will apply to this contract, affects the amount of revenue the vendor can recognize from the transaction.

In this case, the price concession effectively reduces the transaction price, which in turn reduces the amount of revenue the vendor can recognize. According to IFRS 15, the transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.

Given the past experience and current market conditions, the vendor expects to be entitled to only 80% of the original sales price of $100,000, or $80,000. This is the amount that the vendor should recognize as revenue when control of the goods is transferred to the distributor, assuming it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur.

It's worth noting that the vendor will need to update the estimated transaction price at the end of each reporting period and make any necessary adjustments to revenue, based on changes in circumstances.