About the application of the proper accounting procedures

Assignment Help Financial Accounting

Reference no: EM13823088

ABC Co. has three issues related to revenue recognition that they are concerned about the application of the proper accounting procedures. Each of these issues are independent of each other. The issues are:

1) ABC began selling items this year with a six-month return period.

2) ABC sells a product and allows customers to pay extra for installation and for a maintenance contract. The prices involved are:

a) Product alone $1,200

b) Product with installation only $1,300

c) Product with maintenance contract only $1,450

d) Product with both installation and maintenance contract $1,500

3) ABC began selling long-term maintenance contracts on products that it did not sell. ABC received full payment at time contract is signed.

Required: Briefly describe the accounting issue involved for each of the three items and specify guidance in the codification that ABC can rely on to know they are applying the proper accounting procedures in each case.

Reference no: EM13823088

Questions Cloud

Discus how opportunity cost influence : Discus how opportunity cost influence suppliers decision to supply labour

Single plantwide factory overhead rate : Eaton Metal Fabricators Inc.'s Fabrication Department incurred $72,000 of factory overhead cost in producing gears and sprockets. The two products consumed a total of 3,600 direct machine hours. Of that amount, sprockets consumed 1,700 direct machine..

Sell or process further : Jackson Lumber Company incurs a cost of $398 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $562 per hundred board feet. An alternative is to produce a "finished cut" at a total processing cost of $528 per hundred..

Write essay on parents should have license to have children : Write a persuasive Essay about Parents Should have a license to have children.

About the application of the proper accounting procedures : ABC Co. has three issues related to revenue recognition that they are concerned about the application of the proper accounting procedures. Each of these issues are independent of each other. Briefly describe the accounting issue involved for each of ..

Delegate and assign accountabilities and responsibilities : Describe the change, and outline the reasons and positive outcomes available to the work team - Identify the needs of affected groups (both internal and external to the work team), and general concerns of the work team.

Discuss how the parties educate their members and the public : Discuss how the parties educate their members, the public, and the government about their concerns or mission. Consider how the parties encourage members to participate in democratic process and support a specific party.

What is the potential a distance : What is the potential a distance

What factors do you need to consider when making a decision : If you were Dr. Bill Lamont, how would you handle this difficult situation? What factors do you need to consider when making a decision? How might you use emotional intelligence in this situation?

User Account

All Pages