Can someone please help me with the following questions?

Fassinos Wholesale Corporation

Fassino Wholesale Corporation (Fassinos) operates discount retail stores. To shop in a Fassinos store, customers must pay a nonrefundable, annual membership fee in advance, using either cash or an American Express card. A customer purchases an annual membership from Fassinos for $120, a 20-pack of paper towels for $10.99, and four new tires for $480. The tire purchase includes mounting and aligning by a Fassinos tire technician at the time of initial installation and alignment and tire rotation services for three years afterward. The customer pays with an American Express card.

1. Using the Fassinos Wholesale Corporation example, when should Fassinos recognize the $120 membership fee as revenue?

a.	Fassinos should recognize all of the membership fee ($120.00) at the time that the annual membership fee is sold to the customer because it is nonrefundable.
b.	Fassinos should recognize all of the membership fee ($120.00) one year from the time that the annual membership fee is sold to the customer because the membership fee has been fully earned.
c.	Fassinos should recognize 1/12th of the membership fee, or $10.00, each month during the annual membership period.
d.	Fassinos should recognize two-thirds of the membership fee, or $90.00, at the time that the annual membership fee is sold to the customer because it is nonrefundable, and the other one-third of the membership fee, or $30.00, at the end of the annual membership period.
e.	Fassinos should recognize one-quarter of the membership fee, or $30.00, at the time that the annual membership fee is sold to the customer because it is nonrefundable, and the other three-quarters of the membership fee, or $90.00, at the end of the annual membership period.

2. When should Fassinos recognize revenue from selling the tires plus mounting, alignment, and rotation services?

a.	At the time of initial installation, Fassinos performs its obligation to provide both tires and initial mounting and alignment services. Petes should recognize revenue for the portion of the $480 selling price applicable to the sale of tires and installation services at the time of installation.
b.	Fassinos should delay recognition of revenue for the portion of the $480 selling price applicable to the subsequent alignment and rotation services until it performs the required services.
c.	Fassinos should delay recognition of revenue from selling the tires plus mounting, alignment, and rotation services until it performs all of the required services at the end of the three year period.
d.	At the time of initial installation, Fassinos should recognize revenue for all of the $480 selling price applicable to the tires plus mounting, alignment, and rotation services.
e.	Both choices a and b are correct.

3. When should Fassinos recognize revenue from selling the paper towels?

a.	Fassinos will recognize $10.99 in revenue at the time it pays the paper towel vendor the wholesale price of the paper towels.
b.	Fassinos will recognize $10.99 in revenue at the end of the month of sale.
c.	Fassinos will recognize $10.99 in revenue at the end of the quarter of sale.
d.	Fassinos will recognize $10.99 in revenue at the time of sale.
e.	Fassinos will recognize $10.99 in revenue at the end of the year of sale.

4. Project Paso Vineyards processes grapes into champagne, which it bottles, corks, and places on shelves in underground caverns to age for several years. During the aging process, the winemakers hand-turn the bottles a quarter rotation every few months; also, at fixed intervals, they release yeast gases to preclude unwanted fermentation. Assume that Project Paso contracts to sell a quantity of champagne to a customer for 30 million. Under the terms of the contract, Project Paso will store the champagne in its caverns and perform all necessary functions associated with the aging process (for example, turning the bottles and releasing yeast gases). The selling price includes the costs of producing the champagne and providing services during the aging process. The customer pays Project Paso 15 million at the beginning of the aging and storage process, and agrees to pay the remainder in five years upon delivery of the champagne.When should Project Paso Vineyards recognize revenue from selling the champagne?

a.	Project Paso Vineyards should delay revenue recognition until it delivers the champagne to the customer.
b.	Project Paso Vineyards should recognize revenue when it sells the champagne to the customer.
c.	Project Paso Vineyards should recognize one fifth of the revenue per year after it sells the champagne to the customer.
d.	Project Paso Vineyards should recognize one half of the revenue 2 1/2 years after it sells the champagne to the customer.
e.	none of the above.

5. In year 1, Southern Construction agrees to construct a school building for $12,000,000, receiving payments for the work of $6,000,000 in both year 1 and year 2. Southern estimates that the costs will be $4,000,000 in Year 1 and $6,000,000 in Year 2. If Southern uses the percentage-of-completion method (based on total costs), what amount of profit is recognized in each year of the contract?

Year 1 Year 2

a.	$0 $2,000,000
b.	$2,000,000 $0
c.	$1,000,000 $1,000,000
d.	$800,000 $1,200,000
e.	$2,000,000 $1,000,000

Healthy Lawn Maintenance Company

Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year. It made journal entries at the end of each month.

6. (Use the Healthy Lawn information to answer this question.) The aggregate effect of these entries during 2013 is as follows:

a.	Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Accounts Receivable, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
b.	Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Accounts Receivable, Net . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 2,000,000
c.	Accounts Receivable, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
d.	Accounts Receivable, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Sales Revenue . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2,000,000
e.	Notes Receivable, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Sales Revenue . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2,000,000

7. Assume that Healthy Lawn Maintenance estimates that it will not collect 2% of total credit sales in a given month. At the end of each month, it makes an adjusting entry. The aggregate effect of these entries during 2013 is as follows:

a.	Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Accounts Receivable, net. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 40,000
b.	Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
c.	Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 40,000
d.	Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Accounts Receivable, gross . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 40,000
e.	Accounts Receivable, gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

8. If Healthy Lawn Maintenances customers remitted $1,900,000 in cash during 2013, it would make the following journal entries with the following aggregated amounts:

a.	Accounts Receivable, Grossspecific accounts . . . . . . . . . . . . . 1,900,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. 1,900,000
b.	Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1,900,000 Accounts Receivable, netspecific accounts . . . . . . . . . . .. . . . . . . 1,900,000
c.	Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1,900,000 Accounts Receivable, Grossspecific accounts . . . . . . . . . . . . . . . . 1,900,000
d.	Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1,900,000 Notes Receivable, Grossspecific accounts . . . . . . . . . . . . . . . . . . . 1,900,000
e.	Notes Receivable, Grossspecific accounts . . . . . . . . . . . . . . . . . . 1,900,000 Cash . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1,900,000

9. Healthy Lawn Maintenance deems uncollectible any customer account not paid after six months. This means that every accounting period, Healthy Lawn Maintenance ascertains which accounts remained uncollected for six months, and treats these customer accounts as uncollectible by writing them off. If, during 2013, Healthy Lawn Maintenance identified accounts of specific customers totaling $20,000 with unpaid balances for six months and wrote them off, the journal entry would be as follows:

a.	Bad Debt Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Accounts Receivablegross . . . . . . . . . . . . . . . . . . . . . . . . 20,000
b.	Bad Debt Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20,000 Accounts Receivablespecific accounts . . . . . . . . . . . . . . . . 20,000
c.	Allowance for Uncollectibles . . . .. . .. . .. . .. . .. . .. . .. . .. . .. 20,000 Accounts Receivablespecific accounts . . . . . . . . . . . . . . . . 20,000
d.	Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Accounts Receivablegross . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
e.	Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . .20,000 Bad Debt Expenses . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

10. The 2013 year-end balance in Accounts Receivable, Gross, for Healthy Lawn Maintenance is $1,085,000 An aging of these accounts receivable shows that the estimated uncollectible amount is $24,200. Before aging the accounts, the Allowance for Uncollectibles has a debit balance of $15,000 from writing off actual accounts during 2013. Healthy Lawn Maintenance would record the following adjusting entry at the end of 2013 to obtain a credit balance in the Allowance for Uncollectibles of $24,200:

a.	Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,200 Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,200
b.	Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,200 Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,200
c.	Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,200 Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,200
d.	Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,200 Allowance for Uncollectibles . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 39,200
e.	Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000