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Indicate whether each of the following statements is true or false.
In barter transactions, if the commodities exchanged are similar in nature, then no revenue is recognized. Answer
If Sears sells garden tools but gives the customers the right to return them, Sears should recognize an asset for the tools expected to be returned by the customers. Answer
In a consignment arrangement, the consignee recognizes revenue only after receiving notification of the sale. Answer
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- Which of the following statements is incorrect? a) Sales tax collected by a seller is recorded as an increase to sales tax payable. b) Freight in is used in the calculation of net purchases. c) A purchase discount is calculated after subtracting returns and allowances from gross purchases. d) If an item is shipped FOB destination, the seller is responsible for the shipping costs. e) If a seller makes a sale under the terms 2/10, net 30, the sales discount is only available if the buyer pays within the 30 day window. Plz answer fast without plagiarism please i give up voteWhich one of the following statements is false? a. FOB shipping point means the buyer has legal title to the goods while they are in-transit b. FOB shipping point means the buyer has legal title to the goods when they are shipped c. FOB destination means the seller has legal title to the goods until they reach the buyer's place business d. FOB shipping means the buyer acquires legal title to the goods when they reachg the buyer's place of businessRequirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment should be recorded as a sale when the risks of ownership transfer to the buyer and collectability is reasonably assured. B. A shipment should be recorded as a sale when the merchandise is shipped. C. A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. D. A shipment should be recorded as a sale when the merchandise is received by the purchaser.
- a. State how revenue should be recognized for PT. Kamaris PT. Kamaris has sold an electronic equipment on credit to PT Kelelawar. PT Kelelawar would use the equipment if it successfully secure a contract to sell goods to Highlander Co. PT Kamaris has agreed that the machine may be returned at 90% of the price, if PT Kelelawar fails to secure a contract with Highlander Co. b. State how revenue should be recognized for PT. Kamaros PT Kamaros is about to sell a new type of machine that can produce cakes with better quality. Since customer demand is relatively high, Kamaros is taking advance against orders from their customers. The selling price is Rp85,000,0000 per unit and so far 150 customers have paid the initial 30% non-refundable deposit.t is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’ in the trading, profit and loss account when:1. The sale transaction is for a specific quantity of goods at a known price, so that the sales value of the transaction is known for certain.2. The sale transaction has been completed, or else it is certain that it will be completed (e.g. in the case of long-term contract work, when the job is well under way but not yet completed by the end of an accounting period).3. The critical event in the sale transaction has occurred. The critical event is the event after which: i) It becomes virtually certain that cash will eventually be received from the customer.ii) Cash is actually received.Usually, revenue is ‘recognized’i) When a cash sale is made.ii) The customer promises to pay on or before a specified future date, and the debt is legally enforceable.The prudence concept is applied here in the sense that revenue should not be anticipated, and included in the…As a general rule, the buyer has the right to examine the goods before accepting them. The following are the exceptions to the general rule, except Group of answer choices When there is stipulation that the goods shall not be delivered to the buyer until he has paid the price When the good are marked with the words collect on delivery When there is an agreement to that effect When the usage of trade permits examination
- Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
- When should revenue from the sale of merchandise normally be recognized? (Assume the company reports using ASPE.) a.When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. b.When the customer pays for the merchandise. c.Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. d.When the customer takes possession of the merchandise.When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise. B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. D)When the customer pays for the merchandise.Which of the following is not a characteristic of FOB Destination?A. The seller pays for shipping.B. The seller owns goods in transit.C. The point of transfer is when the goods leave the seller’s place of business.D. The point of transfer is when the goods arrive at the buyer’s place of business