1. For each question (there might be more than one), I might provide you with a
ID: 2584099 • Letter: 1
Question
1. For each question (there might be more than one), I might provide you with a story. You have to figure out from the story whether the seller should recognize revenue (i.e., whether the seller actually made a sale). You also have to figure out whether the seller actually sold just one thing or sold more than one thing. You have to figure out whether there is any variable consideration, and if so, how much. If a sale was made, what journal entry or entries should the seller make a. at the time of sale? b. after the time of sale? c. when a warranty claim is made? d. when the warranty period expires? e. if the seller also sold an extended warranty? f. when the seller is in the extended warranty period? Observe that in some cases, in order to make the correct journal entries, you will have to make allocations. I will not provide you the formulas for you to make those allocations; you will have to know them without any prompting. Also observe that you will have to do the accounting (make appropriate journal entries) for expected returns and actual returns.
Explanation / Answer
Where are the stories? I think you forgot to add them here. Please update the question with the stories so that I can provide the complete solution.
Thank you.
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