true or false

1- Warranty costs should be estimated and set up as a provision for warranty cost when revenue is recognized.

2-When a warranty provides a future service in addition to product assurance, a proportionate amount of sales revenue is deferred as a contract liability warranty. This is known as the cost deferral method.

3-Joe signs a one-year contract with a Health Club. Terms of the contract are a $200 non-refundable initiation fee and an annual membership fee of $600 payable in month installments of $50 a month. This contract is a single performance obligation.

4-When initially accounting for a sale with a right of return, a right to recovery asset is credited for the cost of units expected to be returned.

5-When accounting for multiple deliverable contracts, the stand-alone value of a good or service is its selling price when sold alone.

6-When stand-alone prices are highly uncertain in accounting for multiple goods and service contracts, the residual approach is used.

7-In accounting for sales with a right of return, revenue on those sales can be recorded as long as the returns can be predicted.