Expense recognition. Indicate the effect on assets and the amount of expense recognized

(if any) by Computervision from each of the following related events, assuming that the firm uses the accrual basis of accounting:

a. The purchasing department notifies the stockroom that the supply of Apple Macintosh computers has reached the minimum point and requires reordering.

b. Computervision sends a purchase order to Apple Computer for $400,000 of computers.

C. Computervision receives an acknowledgment of the order. Apple Computer indicates that it will deliver the computers in 15 days but that the price has increased to $406,000.

d. The shipment of computers arrives at the receiving department of Computervision in the correct quantity.

e. The purchase invoice arrives. The amount of $406,000 is subject to a 2 percent discount if paid within 10 days. Computervision treats cash discounts taken as a reduction in the acquisition cost of inventory.

f. On inspection, Computervision discovers defective computers with a gross invoice price of $14,000 and returns them to Apple Computer.

g. Computervision pays the balance of the amount due Apple Computer in time to obtain the di.scount.

h. Computervision sells the computers to customers for $500,000.