Question
1. (20 points) Traditions Home Furnishings (THF) agrees to sell a bedroom furniture set that includes a matching bedframe, dresser, and night table for $1,500,
1. (20 points) Traditions Home Furnishings (THF) agrees to sell a bedroom furniture set that includes a matching bedframe, dresser, and night table for $1,500, with no general right of return. The list price of the bedframe is $1,000, the list price of the dresser is $600, and the list price of the night table is $400. The bedframe is delivered 11/15/2010, the dresser is delivered 12/15/2010, and the night table is delivered 1/15/2011. The contract payment terms are $500 due on delivery of each item.
A. How many units of accounting does this contract include under US GAAP and under IFRS?
B. If there is more than one unit of accounting, how should the $1,500 contract price be
allocated to the separate units of accounting under US GAAP and under IFRS?
C. How much revenue should be recorded as of each delivery date under US GAAP and under IFRS, given that subsequent payments are contingent on subsequent deliveries?
D. If the delivery order of the units was reversed, how much revenue should be recorded as of each delivery date under US GAAP and under IFRS?
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