Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9.000 units, it wil grant a rebate of 3% Ifit sells up to 21.100 units, it will grant a rebate of 5% Ifit sells up to 32.200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9.900 units to Riverbed at a sales price of $99.000. Culumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Culumber report for the sale of the 9,900 units in the frst quarter of the vear. Revenue

Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9.000 units, it wil grant a rebate of 3% Ifit sells up to 21.100 units, it will grant a rebate of 5% Ifit sells up to 32.200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9.900 units to Riverbed at a sales price of $99.000. Culumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Culumber report for the sale of the 9,900 units in the frst quarter of the vear. Revenue

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...

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Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
During 2019, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of cocoa beans at 1.00 per pound, delivery to be made in the spring of 2020. Because a record harvest is predicted for 2020, the price per pound for cocoa beans had fallen to 0.80 by December 31, 2019. Of the following journal entries, the one that would properly reflect in 2019 the effect of the commitment of R Corp. to purchase the 100,000 pounds of cocoa is:
CoolShoes sells its elite tennis shoes to sports retailers throughout the country. When introducing its new RF17 shoes that sell for 125 per pair, the company includes a 15 rebate form. The rebate form can be used when the customer ultimately purchases the shoes. CoolShoes sells 100 pairs of shoes and estimates that 80% of the rebate forms will be returned by customers for a rebate. Determine the transaction price that CoolShoes should use when recognizing revenue from sale of one pair of the RF17 shoe.
On January 1, 2019, Piper Company entered into an agreement with Save-Mart to sell its most popular product, the gadget. The contract stipulates that the price per unit will decrease as Save-Mart purchases higher volumes of the gadget, as follows: The contract states that Save-Mart pays Piper the unit price based on the current sales volume. Once a volume threshold is reached, the price is retroactively reduced to the applicable price per unit. Based on its past experience with similar contracts, Piper believes that the total sales volume for the year will be 1,800 units and uses the most likely amount approach to estimate variable consideration. In addition, Piper concludes it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty surrounding the variable consideration is resolved. Required: 1. Determine the transaction price per unit that Piper should use to record revenue. 2. Assume that Save-Mart purchases 800 units in the first quarter of 2019 and 900 units in the second quarter of 2019. Prepare Pipers journal entries to record the sales in the first and second quarters. 3. Given the higher than expected sales volume in the first half of the year, Piper increases its estimate of the sales volume to 2,800 units. Prepare the journal entry to record this change in estimate.
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Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 10,500 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 5%. If it sells up to 30,800 units, it will grant a rebate of 6%. In the first quarter of the year, Splish sells 10,600 units to Blossom at a sales price of $106,000. Splish, based on past experience, has sold over 37,600 units to Blossom, and these sales normally take place in the third quarter of the year.What amount of revenue should Splish report for the sale of the 10,600 units in the first quarter of the year. Revenue $
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Headland Company sells goods to Sage Company during 2017. It offers Sage the following rebates based on total sales to Sage. If total sales to Sage are 10,500 units, it will grant a rebate of 3%. If it sells up to 18,600 units, it will grant a rebate of 4%. If it sells up to 29,200 units, it will grant a rebate of 7%. In the first quarter of the year, Headland sells 10,400 units to Sage at a sales price of $104,000. Headland, based on past experience, has sold over 42,900 units to Sage, and these sales normally take place in the third quarter of the year.What amount of revenue should Headland report for the sale of the 10,400 units in the first quarter of the year. Revenue $
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Beautiful Company started a new promotional program in 2021. For every 10 bottle caps returned to Beautiful, customers receive a basketball. The company estimates that only 60% of the bottles reaching the market will be redeemed. The basketball costs P100 and can be sold separately at P150. Additional information is as follows (see image below).1. How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the Total Revenue to be recognized in 2021?
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