If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sale: O a. Discount. O b. Allowance O . Return. O d. Contra asset
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A: Hi student Since there are multiple questions, we will answer only first question.
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Q: FOB shipping point
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Q: which statement is FALSE as it relates to a trade discount?
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- 1."A sale of Goods Contract once made can never come to an end".Discuss the above statement with relevant examples.38. In which of the following contracts may full payment of the price become the operative act that transfers ownership from the seller to the buyer? Group of answer choices Contract of sale Contract to sell Either a or b Neither a nor bQUESTION ONE It is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’ in the trading, profit and loss account when: 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. 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). 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’ When a cash sale is made. 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…
- In a destination contract for the sale of goods, which of the following is true concerning when the risk of loss passes: When a seller completes its delivery obligations When a buyer accepts conforming goods O When a seller complies with the perfect tender rule When a buyer covers after receiving non-conforming goodsChoose the best answer. 1.Under a consignment arrangement, the consignor recognizes net revenue equal to the gross sales price less the consignee's commission. * a.True b.False 2.A consignor recognizes revenue when the consigned goods are transferred to the consignee. * a.True b.False 3.If another party is primarily responsible for fulfilling a contract with a customer, this may indicate that the entity is an agent. * a.False b.True 4.Pinewood Co. agrees to create an artifcat for Saga Co. Pinewood is primarily liable for the artifact's conformance with the customer's specifications. Pinewood does not have the required expertise so its subcontracts Saleng Co. to do the manufacturing. If the entire manufacturing process is outsourced from Saleng Co., Pinewood would be acting as an agent of Saleng. * a.True b.False 5.Fight Club Co. enters into a contract with Tough Co., a promoter of mixed martial arts (MMA) fights. Under the contract, Fight Club Co. purchases MMA event tickets from Tough…1. From pages 5-1 and 5-2 of the VLN, which statement is FALSE as it relates to a trade discount? Group of answer choices A. It is a concept. B. The company provides a good or service at a reduced price. C. A contra revenue is recognized at the time of sale. D. It causes the sale to be recognized at the reduced, agreed upon price.
- Requirement 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.4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or FalseMultiple-Choice Question: 1. Using the contract-based approach, revenue is recognized for the sale of goods when the following conditions have been met: A. the seller no longer has control over the goods. B. all of these conditions are met. C. delivery of goods has occurred, consistent with terms of a real or implied contract, and any related performance obligation has been completed. D. the amount of revenue and costs can be reliably measured and it is probable the cash will be collected. Please explain for the answer, and why the rest is incorrect.
- 41) n a merchandising sales transaction, the seller sells a product and transfers the ____________ of the goods to the buyer. a. Money b. Ownership c. Document d. None( Appendix 5A) Under the gross method, the seller records discounts taken by the buyer a. at the time of sale. b. at the end of the period in question. c. never; discounts are irrelevant under the gross method. d. as a reduction to sales revenue.Determine if this shall result in recognition of liabilities 19.Sale of gift certificates redeemable in merchandise a. yes b. no