Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Urgent Help Needed!!!!! Consider each of the following scenarios for Bunsen Suppliers Company: The common practice of Bunsen Suppliers is to obtain a written sales

Urgent Help Needed!!!!!

Consider each of the following scenarios for Bunsen Suppliers Company:

  1. The common practice of Bunsen Suppliers is to obtain a written sales agreement. When an Anson Store called on the phone with an urgent need, however, Bunsen orally agreed to deliver goods in exchange for $6,000, then immediately delivered these goods to Anson without a written agreement.
  2. Bunsen Suppliers has a written agreement to deliver goods to Comfort Inc. for $110 per unit. The price will drop to $95 per unit for all units if Comfort purchases more than 1,000 units per month. Bunsen sold 1200 units to Comfort Inc. on April 15, 2020.
  3. Bunsen Suppliers has a written agreement with Darwin Company to deliver 800 units of product each Saturday afternoon. Darwin can alter the quantity or cancel prior to delivery any time before noon Saturday.

Required:

Determine 1) if a contract exists (2 points) for each of these scenarios and 2) identify when revenue would be recognized. (1 point).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Emerging Market Finance New Challenges And Opportunities

Authors: Bang Nam Jeon, Ji Wu

1st Edition

1839820594, 978-1839820595

More Books

Students also viewed these Finance questions