Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell

9th Edition

1119754054, 9781119754053

More Books

Students also viewed these Accounting questions

Question

Define failure. (p. 273)

Answered: 1 week ago

Question

4. Similarity (representativeness).

Answered: 1 week ago