Solutions Problems Chap 18

SOLUTIONS TO UNGRADED PROBLEMS CHAPTER 18 EXERCISE 18-1 (1520 minutes) (a)Uddin could recognize tax income at the demonstrate of sale based upon the time of committedness beca practise the books argon sold f.o.b. shipping point. Because of the double back policy atomic number 53 tycoon argue in favor of the cash prayer basis. Because the returns move be estimated, one could argue for shipping point less(prenominal) estimated returns. (b)Based on the available nurture and lack of either information indi¬cating that any of the criteria in GAAP were not met, the rectify word is to report revenue at the time of shipment as the gross amount less the 12% typical return factor. This is supported by the legal test of reposition of claim and the criteria in GAAP. One could be very buttoned-down and use the 30% maximum return allowance. (c)Accounts receivable15,000,000 gross revenue taxTexts15,000,000 sales Returns* ($15,000,000 X 12%)1,800,000 security dep osit for sales Returns1,800,000 (d)Sales Returns*200,000 Allowance for Sales Returns1,800,000 Accounts Receivable2,000,000 Cash13,000,000 Accounts Receivable13,000,000 *A debit to Sales RevenueTexts or Sales Returns could be made here.

? EXERCISE 18-4 (2025 minutes) (a) crude(a) shekels recognized in: 201020112012 Contract price$1,600,000$1,600,000$1,600,000 be: cost to date$400,000$825,000$1,070,000 Estimated costs to complete 600,000 1,000,000 275,000 1, coke,000 0 1,070,000 Total estimated wage 600,000 500,000 530,0 00 Percentage completed to date ! 40%* 75%** coulomb% Total gross profit recognized 240,000 375,000 530,000 Less: earn profit recognized in previous twelvemonths 0 240,000 375,000 egregious profit recognized in current year $ 240,000 $ 135,000 $ 155,000 **$400,000 ÷ $1,000,000**$825,000 ÷...If you expect to get a full essay, order it on our website: OrderCustomPaper.com

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