Business, 11.07.2019 19:10 CoolDudeTrist

The ole factory, inc. sells scented beauty products and personal care items. it is currently offering a promotion in conjunction with the launch of its new consulting business: customers can purchase a deluxe beauty kit for $500, which is the normal retail price for this item, plus get one month's free access to an online beauty consultant, which normally costs $40 per month. for each deluxe beauty kit sold as part of this promotion, how much revenue and deferred revenue should the ole factory recognize at the time of sale and how should it be allocated?
a. $500 total revenue, allocated $460 to the kit and $40 to the service.
b. $500 total revenue, allocated $463 to the kit and $37 to the service.
c. $500 total revenue, allocated $460 to the kit and $40 to the service. deferred revenue of $240 recorded.
d. $500 total revenue, allocated entirely to the kit. deferred revenue of $240 recorded.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 14:50

Prepare beneish corporation's income statement and statement of stockholders' equity for year-end december 31, and its balance sheet as of december 31. there were no stock issuances or repurchases during the year. (do not use negative signs with your answers unless otherwise noted.)

Answers: 2

Answer

Business, 22.06.2019 22:50

What is one of the advantages of getting a government-sponsored mortgage instead of a conventional mortgage

Answers: 1

Answer

Business, 23.06.2019 00:20

Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:

Answers: 3

Answer

Business, 23.06.2019 03:00

Atennis club charges a monthly membership fee of $150 and charges it members $10 per hour to use a court. there's also $500 fee to become a member. stella joined the tennis club last spring, and she has been a member for 5 months. she has been playing 10 hours of tennis each month. stella values an hour of her time at $20. during a boring afternoon meeting, stella thinks about reserving a court to work on her serve for an hour tonight. what's stella's opportunity cost of working on her serve for an hour?

Answers: 1

Answer

You know the right answer?

The ole factory, inc. sells scented beauty products and personal care items. it is currently offerin...

Questions