Business, 01.11.2019 04:31 CaleWort92
Niwot co. sells products and service plans both separately and bundled together. willy loman, a niwot co. salesman, sold a widgetron in year 5 for $1,000, its normal price, and told the customer he’d "throw in the 3-year service plan for free," which the company normally sells for an additional $150. the product shipped, the customer paid, and $1,000 in revenue was recognized in year 5. is this correct? why or why not? a. this is incorrect because the service revenue must be treated as a separate performance obligation, allocated a portion of the $1,000 sales price, and have revenue for it recognized over the three years of the service plan. b. this is correct because the understanding between the seller and customer was that the product price was $1,000 and the service plan was free, which is in accordance with the principle of faithful representation. c. this is correct because the product shipped and the customer paid. d. this is incorrect because services must be rendered before any revenue can be recognized.
Answers: 1
Business, 22.06.2019 04:50
Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.
Answers: 1
Business, 22.06.2019 10:00
Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a
Answers: 3
Business, 22.06.2019 11:00
%of the world's population controls approximately % of the world's finances (the sum of gross domestic products)" quizlket
Answers: 1
Business, 23.06.2019 00:30
Bruno's pizza restaurant makes full payment of $8,300 on an account payable to stella's cheese co. stella's would record this transaction with a
Answers: 3
Niwot co. sells products and service plans both separately and bundled together. willy loman, a niwo...
Chemistry, 26.10.2021 07:20
Physics, 26.10.2021 07:20
Social Studies, 26.10.2021 07:20
Mathematics, 26.10.2021 07:20
Biology, 26.10.2021 07:20
History, 26.10.2021 07:20
Mathematics, 26.10.2021 07:20
Mathematics, 26.10.2021 07:20
History, 26.10.2021 07:20
History, 26.10.2021 07:20