Evaluate the amount of revenue

Reference no: EM131520833

Question: Assume the following scenarios.

Scenario 1: During 2012, IBM provides consulting services on its mainframe computer for $10,000 on account. The customer does not pay for those services until 2013.

Scenario 2: On January 1, 2012, Gold's Gym sells a one-year membership for $1,200 cash. Normally, this type of membership would cost $1,500, but the company is offering a 20% "New Year's Resolution" discount.

Scenario 3: During 2012, The Manitowoc Company provides shipbuilding services to the U.S. Navy for $300,000. The U.S. Navy will pay $100,000 at the end of each year for the next three years, beginning in 2012.

Scenario 4: During 2012, Goodyear sells tires to customers on account for $24,000. By the end of the year, collections total $20,000. At the end of 2013, it becomes apparent that the remaining $4,000 will never be collected from customers.

Required: For each scenario, calculate the amount of revenue to be recognized in 2012.

Reference no: EM131520833

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