Gillespie Week 5 MBAA 603

Gillespie Week 5 MBAA 603 - Tim Gillespie Week 5 Homework...

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Tim Gillespie Week 5 Homework MBAA 603 18-1 A. Idenitify alternative revenue recognition criteria that Uddin could employ concering textbook sales. The revenue recognition would fall under the sales when right of return exists. B. Briefly discuss the reason for your anwsers in part A. The reason for using this recognition criteria is because there is a high rate of returns and there is a fixed percentage that Uddin uses for allowance for returns of 12% C. In late July, Uddin shipped books invoiced at $15,000,000. Prepare the journal entry to record this event that best conforms to generally accepted accounting principles and your answer to part A. Dr. Cr. Accounts Receivable $15,000,000 Allowance for Returns $1,800,000 Sales Revenue $13,200,000 D. In October, $2 million of the invoiced July sales were returned according to the return policy, and the remainging $13 million was paid. Prepare the entries recording the return and payment. Excess of Returns $200,000 Dr. Cr. Cash $13,000,000 Sales Returns $200,000 Allowance for Returns $1,800,000 Accounts Receivable $15,000,000
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Tim Gillespie Week 5 Homework MBAA 603 18-4 During 2010 Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2012. The following information is available: 2010 2011 2012 Costs Incurred to Date $400,000 $825,000 $1,070,000 Estimated Costs to Complete $600,000 $275,000 $- Billings to Date $300,000 $900,000 $1,600,000 Collections to Date $270,000 $810,000 $1,425,000 A. Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used. 2010 2011 2012 Contract Price $1,600,000 $1,600,000 $1,600,000 Less Estimated Costs: Costs to Date $400,000 $825,000 $1,070,000 Estimated Costs to Complete $600,000 $275,000 $- Estimated Total Costs
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Gillespie Week 5 MBAA 603 - Tim Gillespie Week 5 Homework...

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