What conditions must the company meet to recognize revenue

Assignment Help Accounting Basics
Reference no: EM132008062

Question - Professional Research: FASB Codification

Employees at your company disagree about the accounting for sales returns. The sales manager believes that granting more generous return provisions can give the company a competitive edge and increase sales revenue. The controller cautions that, depending on the terms granted, loose return provisions might lead to non-GAAP revenue recognition. The company CFO would like you to research the issue to provide an authoritative answer.

Instructions

If your school has a subscription to the FASB Codification, go to https://aaa.hq.org/asclogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses.

(a) What is the authoritative literature addressing revenue recognition when right of return exists?

(b) What is meant by "right of return"?

(c) When there is a right of return, what conditions must the company meet to recognize the revenue at the time of sale?

(d) What factors may impair the ability to make a reasonable estimate of future returns?

Reference no: EM132008062

Questions Cloud

Amount of penalty for failure to file his tax return on time : Calculate the amount of Jack's penalty for failure to file his tax return on time, assuming the failure-to-file was not fraudulent.
Estimate the number of pickpockets in a certain city : A statistician is collecting data to help her estimate the number of pickpockets in a certain city.
What was the percentage rate of return on plan assets : Pension plan assets were $91 million at the beginning of the year and $97 million at the end of the year. What was the percentage rate of return on plan assets
What is the expected return of portfolio : What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.01, 0.20, and 0.19, respectfully?
What conditions must the company meet to recognize revenue : Question - Professional Research: FASB Codification. When there is a right of return, what conditions must the company meet to recognize revenue at time sale
What is the effective interest rate : What is the effective interest rate? What if there is a 2% prepayment penalty, what is effective interest rate if the loan is paid at the end of the 5th year?
Find the level of confidence that whiteboards : How would I find the level of confidence that whiteboards are longer than their blackboards if a chalkboard manufacture specifies that their chalkboards
Compute the direct labor variances for the month : A total of 11,700 direct labor-hours were worked. Compute the direct labor variances for the month
What is the value of limited brands stock : What is the value of Limited Brands stock when the required return is 13.5 percent?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Maryland company offers a bonus plan to its employees equal

1.maryland company offers a bonus plan to its employees equal to 2 of net income. marylands net income is expected to

  The financial statements of the melton manufacturing

the financial statements of the melton manufacturing company reports net sales of 300000 and accounts receivable of

  Determine interest expense for the year ended

On June 1, 2001, Janson Bottle Company sold $500,000 in long-term bonds for $428,800. Determine interest expense for the year ended 5/31/03

  Solve questions of torts and crimes

Sam went to E-Z Shop to pick up some groceries. Sam was in a bit of a hurry and began walking swiftly down the aisles of the store.

  Prepare the adjusting entry to record income tax expense

Please prepare the adjusting entry to record income tax expense, income tax payable, and deferred income taxes

  If the materials quantity variance was 3036 unfavorable

kansas company uses a standard cost accounting system. in 2014 the company produced 28200 units. each unit took several

  What is the market value of the contract

Since he was young, Mark has been working at his family's business house, which has to do with growing and selling Eastern Australia Canola.

  Which of the following is correct in regard to equity

Which of the following is correct in regard to equity trading securities?

  Compute the current ratio for both years for both companies

Which company has the better ability to pay short-term obligations according to the current ratio?

  Prepare all the journal entries required for the year

Instructions: Assuming this purchase represents a 25% interest, prepare all the journal entries required for the year

  Compute net purchases at retail and net sales

If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%. Required: Compute net purchases at retail and net sales

  Joan bought a business machine for 15000 on january 1 2010

joan bought a business machine for 15000 on january 1 2010 and later sold the machine for 12800 when the total

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd