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questuin - Q3.1 When did Circuit City file for Chapter 11...

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Q3.1. When did Circuit City file for Chapter 11 bankruptcy? Hint: this announcement occurred in 2008. November 10 th , 2008. Q3.2. When did Circuit City announce it would close all of its stores? Hint: this announcement occurred in 2009. Friday, January 16, 2009- it will go out of business — closing its 567 U.S. stores and cutting approximately 34,000 jobs. Q6.1. What is Best Buy’s revenue recognition policy? Does it differ from Circuit’s City’s policy? If so, what is different? Best buy - We recognize revenue when the sales price is fixed or determinable, collectibility is reasonably assured and the customer takes possession of the merchandise, or in the case of services, at the time the service is provided. Amounts billed to customers for shipping and handling are included in revenue. Revenue is reported net of estimated sales returns and excludes sales taxes. CC- The company recognizes revenue from the sale of merchandise at the time a customer takes possession of the merchandise. Net sales exclude sales tax collected from customers. The company recognizes service revenue at the time the service is provided, the sales price is fixed or determinable, and collectibility is reasonably assured. Q6.2. What is Best Buy’s method of accounting for inventories? Does it differ from Circuit’s City’s inventory method? If so, what is different? BB - Merchandise inventories are recorded at the lower of average cost or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor’s products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold.
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