You are hired to review the accounting records of Sherry Inc (a public corporation) before it closes its revenue and expense accounts as at December 31, 2020, the end of its current fiscal year The following information comes to your attention State whether you agree or disagree with each of the accounting decisions made by Sherry below and briefly explain why If you disagree, list one violation of the conceptual framework On December 28, Sherry collected $76,000 cash in advance for merchandise to be shipped in January This transaction was recorded on December 28 as a debit to cash , $76,000 and a credit to sales revenue, $76,000 Agree or Disagree Briefly explain why you agree or disagree If you disagree, list one accounting concept principle assumption qualitative criteria measurement method that is not followed The estimated remaining useful life of its manufacturing equipment was reviewed by management and determined to be longer than originally expected It was increased by four years and this reduced depreciation expense by $25,000 during fiscal 2020 Agree or Disagree Briefly explain why you agree or disagree If you disagree, list one accounting concept principle assumption qualitative criteria measurement method that is not followed Merchandise that cost $540,000 was reported on the statement of financial position at $620,000, which is the expected selling price less estimated selling costs To record this increase in value, Sherry debited inventory by $80,000 and credited sales revenue by $80,000 Agree or Disagree Briefly explain why you agree or disagree If you disagree, list one accounting concept principle assumption qualitative criteria measurement method that is not followed To maintain customer goodwill, Sherry voluntarily recalled some products during the year Sherry has not established an accrual for the estimated liability from the recall and is recording sales returns as they happen Agree or Disagree Briefly explain why and if you disagree, list one accounting concept principle assumption qualitative criteria measurement method that is not followed

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You are hired to review the accounting records of Sherry Inc. (a public corporation) before it closes its revenue and expense accounts as at December

You are hired to review the accounting records of Sherry Inc. (a public corporation) before it closes its revenue and expense accounts as at December 31, 2020, the end of its current fiscal year. The following information comes to your attention. State whether you agree or disagree with each of the accounting decisions made by Sherry below and briefly explain why. If you disagree, list one violation of the conceptual framework

On December 28, Sherry collected $76,000 cash in advance for merchandise to be shipped in January. This transaction was recorded on December 28 as a debit to cash , $76,000 and a credit to sales revenue, $76,000.

Agree or Disagree:____________________________

Briefly explain why you agree or disagree. If you disagree, list one accounting concept/principle/assumption/qualitative criteria/measurement method that is not followed.

The estimated remaining useful life of its manufacturing equipment was reviewed by management and determined to be longer than originally expected. It was increased by four years and this reduced depreciation expense by $25,000 during fiscal 2020.

Agree or Disagree:____________________________
Briefly explain why you agree or disagree. If you disagree, list one accounting concept/principle/assumption/qualitative criteria/measurement method that is not followed.

Merchandise that cost $540,000 was reported on the statement of financial position at $620,000, which is the expected selling price less estimated selling costs. To record this increase in value, Sherry debited inventory by $80,000 and credited sales revenue by $80,000.

Agree or Disagree:____________________________
Briefly explain why you agree or disagree. If you disagree, list one accounting concept/principle/assumption/qualitative criteria/measurement method that is not followed.

To maintain customer goodwill, Sherry voluntarily recalled some products during the year. Sherry has not established an accrual for the estimated liability from the recall and is recording sales returns as they happen.

Agree or Disagree:____________________________
Briefly explain why and if you disagree, list one accounting concept/principle/assumption/qualitative criteria/measurement method that is not followed.