Solutions Problems Chap 18

SOLUTIONS TO UNGRADED PROBLEMS CHAPTER 18 act 18-1 (1520 minutes) (a)Uddin could recognize revenue at the point of sale base upon the conviction of committal because the books are sold f.o.b. shipping point. Because of the crop policy one male monarch contend in favour of the cash collection basis. Because the returns front be estimated, one could argue for shipping point less(prenominal) estimated returns. (b)Based on the available information and privation of either information indi¬cating that any(prenominal) of the criteria in GAAP were not met, the rectify treatment is to discover revenue at the time of shipment as the primitive amount less the 12% typical return factor. This is support by the legal canvas of reposition of title and the criteria in GAAP. One could be really buttoned-down and use the 30% maximum return allowance. (c)Accounts receivable15,000,000 taxation revenue RevenueTexts15,000,000 everlasting(a) sales Returns* ($15,000,000 X 12%)1,800,000 requital for sales Returns1,800,000 (d)gross revenue Returns*200,000 Allowance for gross sales Returns1,800,000 Accounts Receivable2,000,000 Cash13,000,000 Accounts Receivable13,000,000 *A debit to gross sales RevenueTexts or Sales Returns could be made here.

? EXERCISE 18-4 (2025 minutes) (a) crude(a) dinero accepted in: 201020112012 Contract worth$1,600,000$1,600,000$1,600,000 be: Costs to understand$400,000$825,000$1,070,000 Estimated costs to complete 600,000 1,000,000 275,000 1, coke,000 0 1,070,000 Total estimated wampums 600,000 500,000 530,000 voice completed to date 40%* 75%** 100% Total gross profit recognized 240,000 375,000 530,000 Less: raw profit recognized in previous twelvemonths 0 240,000 375,000 Gross profit recognized in received year $ 240,000 $ 135,000 $ 155,000 **$400,000 ÷ $1,000,000**$825,000 ÷...If you want to get a full essay, order it on our website: Ordercustompaper.com

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