menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 17, Problem 2E
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 24GI
Problem 25GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 13RE
Problem 14RE
Problem 15RE
Problem 16RE
Problem 17RE
Problem 18RE
Problem 19RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
Problem 9C
Problem 10C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
15 views

Consider each of the following scenarios:

  1. a. A seller orally agrees with one of its best customers to deliver goods in exchange for $10,000. While the seller’s practice is to obtain a written sales agreement, the seller delivered these goods to the customer without a written agreement due to the customer’s urgent need.
  2. b. A seller agrees to provide accounting services to a customer for the next year in exchange for $40,000. While the two parties are negotiating the terms of the agreement and the specific services to be performed, the seller begins to perform some services as a gesture of good faith.
  3. c. A seller has a written agreement to deliver goods to a customer for $50 per unit. The price will drop to $45 per unit if the customer purchases more than 2,000 units per month.
  4. d. A seller had a written agreement and provided custodial services to a customer for $2,000 per month in a previous year. The contract expired on December 31, 2019. During negotiations for a new contract in January 2020, custodial services were provided at the previous monthly rate and paid for by the buyer. The seller and the customer agree to a new contract on February 1, 2020. The seller is concerned whether a contract existed in January 2020 and whether revenue can be recognized.

Required:

  1. 1. Determine if a contract exists for each of the scenarios.
  2. 2. If it is determined that a contract exists but the seller believes it is probable that it will not collect the expected consideration, how does this affect the seller’s ability to recognize revenue?

1.

To determine

Ascertain whether a contract exists for each of the scenarios.

Explanation

Contract:

Contract is an agreement among two parties or more parties which includes enforceable obligations and rights. A contract can be written, oral or implied by ordinary business practices.

a. Yes, a contract exists. An oral contract signify an “enforceable contract” as long as the contract is accepted by both parties, right of each party can be recognized, terms of payment can be recognized, the contract has commercial substance, and it’s possible that the company will bring together the consideration to which it is entitled. All of these conditions seem to be met in this scenario.

b. No, a contract does not exist. A company should be capable of identifying each party’s rights with respect to the goods or services to be transferred...

2.

To determine

State the manner in which the seller’s ability to recognize revenue is affected if it is ascertained that a contract exists but the seller believes it is possible that it will not collect the expected consideration.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 17,
Problem 1E
Chapter 17,
Problem 3E
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 17 Solutions

Show all chapter solutions add
Ch-17 P-1GICh-17 P-2GICh-17 P-3GICh-17 P-4GICh-17 P-5GICh-17 P-6GICh-17 P-7GICh-17 P-8GICh-17 P-9GICh-17 P-10GI
Ch-17 P-11GICh-17 P-12GICh-17 P-13GICh-17 P-14GICh-17 P-15GICh-17 P-16GICh-17 P-17GICh-17 P-18GICh-17 P-19GICh-17 P-20GICh-17 P-21GICh-17 P-22GICh-17 P-23GICh-17 P-24GICh-17 P-25GICh-17 P-1MCCh-17 P-2MCCh-17 P-3MCCh-17 P-4MCCh-17 P-5MCCh-17 P-6MCCh-17 P-7MCCh-17 P-9MCCh-17 P-10MCCh-17 P-1RECh-17 P-2RECh-17 P-3RECh-17 P-4RECh-17 P-5RECh-17 P-6RECh-17 P-7RECh-17 P-8RECh-17 P-9RECh-17 P-10RECh-17 P-11RECh-17 P-12RECh-17 P-13RECh-17 P-14RECh-17 P-15RECh-17 P-16RECh-17 P-17RECh-17 P-18RECh-17 P-19RECh-17 P-1ECh-17 P-2ECh-17 P-3ECh-17 P-4ECh-17 P-5ECh-17 P-6ECh-17 P-7ECh-17 P-8ECh-17 P-9ECh-17 P-10ECh-17 P-11ECh-17 P-12ECh-17 P-13ECh-17 P-14ECh-17 P-15ECh-17 P-16ECh-17 P-17ECh-17 P-18ECh-17 P-19ECh-17 P-20ECh-17 P-21ECh-17 P-22ECh-17 P-23ECh-17 P-24ECh-17 P-25ECh-17 P-26ECh-17 P-1PCh-17 P-2PCh-17 P-3PCh-17 P-4PCh-17 P-5PCh-17 P-6PCh-17 P-7PCh-17 P-8PCh-17 P-9PCh-17 P-10PCh-17 P-11PCh-17 P-1CCh-17 P-2CCh-17 P-3CCh-17 P-4CCh-17 P-5CCh-17 P-6CCh-17 P-7CCh-17 P-8CCh-17 P-9CCh-17 P-10C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

ANALY SIS OF PROFITABILITY Based on the financial statement data in Exercise 24-1B, compute the following profi...

College Accounting, Chapters 1-27

Twenty-First Century Fox, Inc. is one of the worlds largest entertainment companies that includes Twentieth Cen...

Financial Accounting

Explain how a defined contribution pension plan works.

Financial & Managerial Accounting

In a segmented income statement, which of the following statements is true? a. Segment margin is greater than c...

Managerial Accounting: The Cornerstone of Business Decision-Making

Horizontal analysis of income statement For 20Y2, McDade Company reported a decline in net income. At the end o...

Accounting

Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States and Canada a...

Financial And Managerial Accounting

How do HTTP and HTTP-NG differ?

Accounting Information Systems

Using the statement of cash flows You are considering an investment in a new start-up company, Giraffe Inc., an...

Corporate Financial Accounting

(Shape of the PPF) Suppose a production possibilities frontier includes the following combinations: Cars Washin...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Describe the elements of the marketing mix

MKTG 12:STUDENT ED.-TEXT

What could account for a backward-bending labor supply curve?

Economics:

What are the two subfields into which economics is divided? Explain what each subfield studies.

Principles of Microeconomics (MindTap Course List)

Draw the short-run trade-off between inflation and unemployment. How might the Fed move the economy from one po...

Brief Principles of Macroeconomics (MindTap Course List)

Direct Response: Chesapeake Sail communication has been poor. Business is booming, and he does not have enough...

Essentials of Business Communication (MindTap Course List)

A survey conducted by Better Homes and Gardens Real Estate LLC showed that one in five U.S. homeowners have eit...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Identify the four elements of the marketing mix.

Foundations of Business (MindTap Course List)

What is the difference between the unilateral and multilateral approaches to achieving free trade? Give an exam...

Principles of Economics (MindTap Course List)

Suppose I observe that communities with lots of doctors tend to have relatively high rates of illness. I conclu...

ECON MACRO

Distribution center managers for Anheuser-Busch lnBev frequently start the day with a sort of pep rally, review...

Management, Loose-Leaf Version

Discuss the following statement: If a firm has only independent projects, a constant WACC, and projects with no...

Fundamentals of Financial Management (MindTap Course List)

List and briefly explain the three principles that describe how the economy as a whole works.

Essentials of Economics (MindTap Course List)

(Oligopoly Behavior) Why is firm behavior under oligopoly so difficult to predict?

ECON MICRO

Why dont banks hold 100-percent reserves? How is the amount of reserves banks hold related to the amount of mon...

Principles of Macroeconomics (MindTap Course List)

What is the COBIT 5 framework? How does it differ from the COSO framework?

Accounting Information Systems

Would the yield spread on a corporate bond over a Treasury bond with the same maturity tend to become wider or ...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Explain how relation-ship marketing can move customers up the loyalty ladder.

Contemporary Marketing

Here is the partial work sheet for Eckland Stereo. Required 1. Prepare a statement of owners equity (no additio...

College Accounting (Book Only): A Career Approach

On March 1 of this year, Stowe Company established a Petty Cash Fund, and the following petty cash transactions...

College Accounting (Book Only): A Career Approach

Layton Company purchased tool sharpening equipment on October 1, 2014, for 108,000. The equipment was expected ...

Financial Accounting

Classified balance sheet The following accounts appear in an adjusted trial balance of Kangaroo Consulting. Ind...

Financial & Managerial Accounting

Product pricing using the cost-plus approach concepts; differential analysis for accepting additional business ...

Accounting (Text Only)

OPTIMAL CAPTTAL BUDGET Marble Construction estimates that its WACC is 10% if equity comes from retained earning...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why are accruals called spontaneous sources of funds, what are their costs, and why don't firms use more of the...

Fundamentals of Financial Management (MindTap Course List)

Every year, the U.S. Coast Guard collects data and compiles statistics on reported recreational boating acciden...

Statistics for Business & Economics, Revised (MindTap Course List)

Evaluate the following statements. Determine whether each is true or false and explain your answer. a. If econo...

Exploring Economics

STOCK SUBSCRIPTIONS Athletics West had the following stock transactions during the year: (a) Received subscript...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

a. Explain how bar code readers work. b. Explain how optical character recognition (OCR) works and how it diffe...

Pkg Acc Infor Systems MS VISIO CD

Jamal has a utility function U = W1/2, where W is his wealth in millions of dollars and U is the utility he obt...

Principles of Macroeconomics (MindTap Course List)

Huche Company allows its employees to carry over unused personal time off (PTO) days (vacation, sick days, etc....

PAYROLL ACCT.,2019 ED.(LL)-TEXT

A. Land with an assessed value of 750,000 for property tax purposes is acquired by a business for 900,000. Ten ...

Corporate Financial Accounting

Classify each of the following expenditures as cit her a revenue or capital expenditure: (a) installation of a ...

Survey of Accounting (Accounting I)

Money is a means of lowering the transaction costs of making exchanges. Do you agree or disagree? Explain your ...

Macroeconomics

ANALYZE THE ISSUE Make an argument in favor of the European import restrictions. Make an argument against this ...

Economics For Today

Add necessary dashes, parentheses, or periods. Additional consultants, programmers and analysts, were hired to ...

Bcom

Selected activities and other information are provided for Patterson Company for its most recent year of operat...

Cornerstones of Cost Management (Cornerstones Series)

Whether an economist argues in favor of a rise in government spending (as an expansionary fiscal policy measure...

Economics (MindTap Course List)

Use the accompanying figure to answer questions 24. 2. Is the firm in the figure a natural monopoly? Explain yo...

Microeconomics

What is the difference between a gray box and a black box approach to early supplier involvement? Under what ci...

Purchasing and Supply Chain Management

Continuing the previous problem, determine the portfolio that minimizes the chance that you will lose money dur...

Practical Management Science

bartleby
© bartleby 2019