Perform research using the FASB codification for the accounting issue below.You will insert your answer into the final exam when you are taking the final exam on D2L.Make sure you have completed this research prior to opening the final exam on D2L<\/p>
<\/p>
Bridge Hardware is a privately owned company that has 10 store locations.Bridge Hardware's fiscal year end is May 31, 2021. On January 1, 2021 Bridge Hardware began a program to increase sales.Bridge Hardware began to permit approved customers to use the new \"Bridge Hardware\" credit card.Approved customers could use the Bridge Hardware credit card for all purchases up to their approved credit limit.Customer payments on the credit cards are made directly to Bridge Hardware.The credit card terms is that all accounts are due in full on the 1st <\/sup>of each month.Any accounts that are not paid in full on the due date will be charged a 20% interest rate on unpaid balances and any accounts not paid on the due date will be a charged $100 late fee plus the related interest.Bridge believes that it is probable based upon the current economy and industry experience that 10% of all customers' accounts will be uncollectible.<\/p> <\/p> On May 1, 2021 100 customers did not make the minimum payment.Bridge Hardware charged the $100 late fee to these 100 customers (total $10,000) plus the related interest.75 of these 100 customers had made the required minimum payment plus the late fee and related interest by May 31, 2021 (received $7,500 in late fees).<\/p> <\/p> <\/p> <\/p> Accounting Issue:<\/strong>The CFO of Bridge Hardware has asked you to research the timing and amount that Bridge Hardware is permitted to recognize for the late fees as of May 31, 2021..He is unsure if Bridge Hardware is permitted to recognize the late fees under each of the following scenarios as of May 31, 2021:<\/p> Scenario 1:<\/strong>Recognize $0 <\/p> Scenario 2:<\/strong>Recognize$10,000<\/p> Scenario 3 <\/strong>Recognize $9,000<\/p> Scenario 4:<\/strong>Recognize $7,500<\/p> <\/p> GAAP Codification Reference<\/strong>:_______________________<\/p> <\/p> <\/p> <\/p>",
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"title": "Global Strategy",
"isbn": "0357512367, 978-0357512364",
"edition": "5th Edition",
"authors": "Mike W. Peng",
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"question_posted": "2024-06-28 03:46:10",
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