Problems 42 & 43
Chapter 7 Revenue Recognition Contract modifications a. Contract modification of distinct goods not reflective of standalone selling prices. b. Contract modification of non-distinct goods. Contract modification of distinct goods at standalone selling prices. c. On June 5, 2020, Quantum Corp. sold 500 units to a manufacturer. Payment is due in 30 days according to the Brief Exercise 7-42 normal credit arrangements with this customer. However, the units will not be shipped to the manufacturer for 2 Timing of Revenu to 6 weeks due to an unexpected change in the manufacturer's production schedule. Quantum Corp. has isolated Bail-and-Hold the units in its storage facility and will ship the items when the manufacturer can accommodate the items. If the Arangement LO units were shipped to the manufacturer on July 6, 2016, when would Quantum Corp. recognize revenue? Recognition orn A magazine distributor ships a supply of weekly issues to a chain of grocery stores on the first day of the month of March 2020. The grocery chain will receive a 20% sold at the end of the week are returned to the distributor at the same time that the inventory of th issue is dropped off at the grocery store. At what point in the process does the distributor recognize revenue? mission on any magazines sold. Any magazines not Recognizing Rlevenue e next weekly 7-44 urposes:(0)eane En Indicate how each of the following contractual arrangements would be treated for accounting p ing agreement, (2) financing agreement, or (3) sale with the right of return. Classilying Repurchase LOS a. Contract obligates the seller to repurchase merchandise sold to a customer where the repurchase price b. Contract obligates the seller to repurchase merchandise sold to a customer where the repurchase price c. Contract gives the right to the seller to repurchase merchandise sold to a customer where the repurchase ler to renurchase merchandise sold to a customer where the repurchse is greater than the original selling price. is less than the original selling price price is less than the original selling price Chapter 7 Revenue Recognition Contract modifications a. Contract modification of distinct goods not reflective of standalone selling prices. b. Contract modification of non-distinct goods. Contract modification of distinct goods at standalone selling prices. c. On June 5, 2020, Quantum Corp. sold 500 units to a manufacturer. Payment is due in 30 days according to the Brief Exercise 7-42 normal credit arrangements with this customer. However, the units will not be shipped to the manufacturer for 2 Timing of Revenu to 6 weeks due to an unexpected change in the manufacturer's production schedule. Quantum Corp. has isolated Bail-and-Hold the units in its storage facility and will ship the items when the manufacturer can accommodate the items. If the Arangement LO units were shipped to the manufacturer on July 6, 2016, when would Quantum Corp. recognize revenue? Recognition orn A magazine distributor ships a supply of weekly issues to a chain of grocery stores on the first day of the month of March 2020. The grocery chain will receive a 20% sold at the end of the week are returned to the distributor at the same time that the inventory of th issue is dropped off at the grocery store. At what point in the process does the distributor recognize revenue? mission on any magazines sold. Any magazines not Recognizing Rlevenue e next weekly 7-44 urposes:(0)eane En Indicate how each of the following contractual arrangements would be treated for accounting p ing agreement, (2) financing agreement, or (3) sale with the right of return. Classilying Repurchase LOS a. Contract obligates the seller to repurchase merchandise sold to a customer where the repurchase price b. Contract obligates the seller to repurchase merchandise sold to a customer where the repurchase price c. Contract gives the right to the seller to repurchase merchandise sold to a customer where the repurchase ler to renurchase merchandise sold to a customer where the repurchse is greater than the original selling price. is less than the original selling price price is less than the original selling price
