I am Looking for the correct Journal entries for each question. The first 3 questions are for ASC 605 & the second 3 questions are for the revised ASC 606.

Instructions: This case is requires the preparation of at least 2 accounting issues memos about revenue recognition requirements. There are 2 parts to the project. The first part is focused on the current requirements for revenue recognition, requiring at least 1 memo. The second part uses the same background information but the accounting issues memo(s) should be based on the new (revised) revenue recognition guidance. Each part has 3 sections or scenarios. You may prepare one memo per part combining all 3 sections for or you may treat each section as a separate memo. Writing counts! Up to 20% of the total points will be assigned to the quality of the writing.

Section 1 Background Mixer Up (MU) manufactures cordless mixers for use in the kitchens of consumers. MU sells to retailers, which sell the mixers to the ultimate consumer. One of MUs retail customers is Kitchen Hardware (KH). On January 1, MU sells to and receives payment from KH for 100 cordless mixers with a one-year warranty for $50 each. The mixers are delivered by MU to KH upon receipt of payment and the warranty is initiated at that time as well by MU. This warranty provides for a replacement of the mixer if the mixer fails to work properly within one year of the date of purchase. MU also sells its mixers with no warranty for $40 per unit. The cost to manufacture each mixer is $32. MU also provides its retail customers with sales incentives in the form of volume discounts on purchases of mixers with warranties paid at the end of an annual period. The agreement between MU and KH provides for the following volume discounts. Additionally, the probability of purchases for each volume level as estimated by MU is provided based on historical experience and forecasted sales. Number of mixers purchased Discount Probability Less than 1,000 0.00% 35.00% 1,000 through 1,999 3.75% 40.00% 2,000 or more 10.00% 25.00% The discounts are retroactive. If 2,000 mixers are purchased during the year, a discount of 10% will be applied to all 2,000 mixers.

Section 1: Part 1Use ASC 605 Requirement You are asked to advise MU on how revenue related to the KH transaction should be recognized during January, taking into consideration the volume discounts and warranties, if necessary. Suggest journal entries and disclosures, if required. Your memo should be based on current GAAP.

Section 2 Background MU just developed new universal titanium replacement mixer blades. These replacement blades can be used in most mixers currently on the market. MU is selling these blades with a right of return for 30 days. On January 15, management believes it is probable that 10% of the titanium blades sold will be returned. This belief is based on significant experience in estimating returns on other mixer blades MU has developed and sold in the past. MU estimates the cost of processing any returned blades will be insignificant. On January 15, KH purchases and pays for 40 blades at a cost of $20 each. The cost to manufacture each blade was $14. On January 31, MUs assessment of potential returns had not changed from its assessment on January 15.

Section 2: Part 1 Use ASC 605 Requirement You are asked to advise MU on how revenue related to the KH purchase of the titanium blades should be recognized during January. Suggest journal entries and disclosures, if required. Your memo should be based on current GAAP. Section 3 Background On January 1, MU separately entered into a non-exclusive licensing agreement with KH. The licensing agreement allows KH the right to use the MU trademarked logo on aprons and chef hats for a two-year period. MU also plans to spend $1 million during the two-year period on advertising its products with the logo. The rights and terms granted by MU to KH are similar to those granted by MU in licensing agreements with various other companies. KH paid MU a one-time fee of $12,000 on January 1 at the inception of the two-year licensing period.

Section 3 Part 1 Use ASC 605 Requirement You are asked to advise MU on how revenue related to the KH licensing agreement should be recognized during January. Suggest journal entries and disclosures, if required. Your memo should be based on current GAAP. PART 2 Refer to the same background information for each of the 3 sections provided above. The requirements for Part 2 are similar to Section 1 requirements, but must be based on the new revenue recognition guidance.

Section 1: Part 2 Use ASC 606 Requirement You are asked to advise MU on how revenue related to the KH transaction should be recognized during January, taking into consideration the volume discounts and warranties, if necessary. Suggest journal entries and disclosures, if required. Your memo should be based on the new, revised revenue recognition standard. You should specifically address each of the 5 steps.

Section 2: Part 2 Use ASC 606 Requirement You are asked to advise MU on how revenue related to the KH purchase of the titanium blades should be recognized during January. Suggest journal entries and disclosures, if required. Your memo should be based on the new, revised revenue recognition standard. You should specifically address each of the 5 steps.

Section 3 Part 2 Use ASC 606 Requirement You are asked to advise MU on how revenue related to the KH licensing agreement should be recognized during January. Suggest journal entries and disclosures, if required. Your memo should be based on the new, revised revenue recognition standard. You should specifically address each of the 5 steps.