20. [Revenue recognition] Until the first quarter of 2001, Wal- Mart Stores [WMT] recognized revenues from layaway
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20. [Revenue recognition] Until the first quarter of 2001, Wal- Mart Stores [WMT] recognized revenues from layaway transac- tions [putting merchandise aside for customers who make partial payment] when the merchandise was placed on layaway. During the first quarter of 2001, the Company changed its accounting method to recognize revenues for layaway transactions when the customer has satisfied all payment obligations and takes posses- sion of the merchandise.
a. Describe the expected effect of the accounting change on WMI net income (i) In fiscal 2001 (ii) In following years
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Related Book For
The Analysis And Use Of Financial Statements
ISBN: 9780471375944
3rd Edition
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
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