Potential costs due to the discovery of a possible defect

Reference no: EM13601019

Potential costs due to the discovery of a possible defect related to one of its products. These costs are probable and can be reasonably estimated.
A potential claim for damages to be received from a lawsuit filed this year against another company. It is probable that proceeds from the claim will be received by Skinner next year.Potential costs due to a promotional campaign whereby a cash refund is sent to customers when coupons are redeemed. Skinner estimated, based on past experience, that 70% of the coupons would be redeemed. In actuality, 40% of the coupons were actually redeemed and the cash refunds sent this year. The remaining 30% of the coupons are expected to be redeemed next year.
Required:

How should Skinner report the potential costs due to the discovery of a possible product defect? Explain the reasons for your answer.
How should Skinner report this year the potential claim for damages that may be received next year? Explain the reasons for your answer.This year, how should Skinner account for the potential costs and obligations due to the promotion campaign? Explain the reasons for your answer.

Reference no: EM13601019

Questions Cloud

The assets were sold for 260000 and the liabilities were : ariel mandy and tisha are partners in a tanning salon. the assets liabilities and capital balances as of july 1 2010

You are a senior manager at entergy corporation all senior : you are a senior manager at entergy corporation. all senior managers and the board of directors are scheduled to meet

Folsom corporations common stock is currently selling on a : folsom corporations common stock is currently selling on a stock exchange at 183 per share and its current balance

The marinade department began the period with 125000 units : the marinade department began the period with 125000 units. during the period the department received another 180000

Potential costs due to the discovery of a possible defect : potential costs due to the discovery of a possible defect related to one of its products. these costs are probable and

Based on the ranking in i how much time should ortiz spend : office visits phone calls weight-loss support group maximum number of patient billings per day 20 40 50 hours per

In the video that you watched a grocery clerk brought a : in the video that you watched a grocery clerk brought a woman that had gone into labor to the hospital using the

Diekow productions manufactured and sold 1000 products at : diekow productions manufactured and sold 1000 products at 11000 each during the past year. at the beginning of the year

Which of the principles best describes the rationale for : which of the principles best describes the rationale for matching administrative and selling expenses with revenues of

User Account

All Pages