Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Under ASPE 3400, revenue can be recognized if the following criteria have been met :- Performance has been achieved. This criterion is not met as
Under ASPE 3400, revenue can be recognized if the following criteria have been met :- Performance has been achieved. This criterion is not met as the order was completed by December 28 but not delivered until January 2. Reasonable assurance exits regarding the measurement of the consideration. This criterion is met as total cost of 14 sofas is fixed at $ 22,100. Ultimately collection is reasonably assured. This criterion is met as Barbor is Moderns Inc's long-term customer and a deposit of $9,000 has been provided. ASPE 3031 should be considered to determine the inventory evaluation. The sofas which have cost of $920 each were excluded from the ending inventory count that was performed and completed on December 31
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started