Schwartz Glass (“Schwartz’’) is a public company and offers its customers payment terms of 1/10, n/30, where purchasers making payment within 10 days of the product receipt will receive a 1% discount off the purchase price, or must pay the full balance within 30 days. Schwartz has just received payment from a new customer who paid within the 10-day window and is thus entitled to the 1% discount. The discount will not result in a loss to Schwartz on the sale of the product. Schwartz needs your help to determine when the 1% sales incentive should be recognized, and how it should be recorded- as a reduction in revenue, or as accost of sales?

Prepare a proper accounting research (issues) memo prepare an accounting research memo). Your memo should follow the format of the examples on page 103 of Collins (do not prepare a draft – prepare a final memo.

Make proper citations. Use the printer friendly feature (in the ASC) to cut and paste the words of the citation into your memo. Avoid providing