When a company sells a product for cash, it generally recognizes the revenue. However, there are situations when it is not always clear when a company should recognize the revenue. How do you handle a car dealership that sells a warranty contract to its customers for $650 that will cover the next 5 years?

A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables?   The credit to Accounts Receivable is less than the debit to Cash when the accounts are sold.     Selling expenses will increase each time accounts are sold.     The other expense section of the income statement will increase each time accounts are sold.     The loss section of the income statement will increase each time receivables are sold.

Some businesses called “car-title lenders” offer quick cash loans in exchange for holding the title to your car as collateral (you lose your car if you fail to pay off the loan). In many states, these lenders operate under pawnbroker laws that allow them to charge a fee that is a percentage of the unpaid balance. Suppose you need $2000 in cash, and a car-title lender offers you a loan at an interest rate of 2% per month plus a monthly fee of 20% of the unpaid balance. How much will you owe in interest and fees on your $2000 loan at the end of the first month? Suppose that you pay only the interest and fees each month. How much will you pay over the course of a full year? Suppose that you instead obtain a loan of $2000 from a bank with a term of 3 years and an APR of 10%. What are your monthly payments in that case? Compare these to the payments to the car-title lender.

Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit. These terms will affect the cost of the asset for both the buyer and the seller. Consider the following case: Tasty Tuna Corporation buys on terms of 3/15, net 45 from its principal supplier. If Tasty Tuna receives an invoice for $856.75, then the true price of this invoice is    .   The supplier is willing to extend credit that exhibits a nominal annual cost of    .   Suppose Tasty Tuna doesn’t take the discount and instead chooses to pay its supplier five days' late—so that on average, Tasty Tuna will pay its supplier on the 50th day after the date of sale. As a result, Tasty Tuna can decrease its actual nominal cost of trade credit by    by paying late.

Q3. An entity sells 100 products for $100 each. Sales are made for cash, rather than on credit terms. The entity’s customary business practice is to allow a customer to return any unused product within 30 days and receive a full refund. The cost of each product is $60. To determine the transaction price, the entity decides that the approach that is most predictive of the amount of consideration to which the entity will be entitled is the most likely amount. Using the most likely amount, the entity estimates that three products will be returned. The entity’s experience is predictive of the amount of consideration to which the entity will be entitled. The entity estimates that the costs of recovering the products will be immaterial and expects that the returned products can be resold at a profit.REQUIREDProvide the accounting entries to record the sale, and the subsequent return of the assets, assuming that the returns occur in accordance with expectations.

An company charges $120 for a warranty.  The product has a failure rate of 0.5% and, if the product fails, the company must pay out the full $120.  If the company charges $11 per warranty, how much money do they make each time they sell one?  Or, out another way, what is their EV?

can you please explain how to recognize the revenue if you have the information below using IFRS The A company sells copy machine at a sales price of JPY1,500,000 per unit. The salesprice includes delivery and installation. It also gives a maintenance service (6 years) in which atechnician checks to make sure that the machine is working properly with a price of JPY500,000(one-time prepayment).The A company has started a promotion campaign in which the maintenance service (6years) will be offered for free to a client that buys a copy machine of JPY 1,728,000.The A company has made a contract to sell a copy machine with the maintenance service(6 years) to B company by JPY 1,728,000.

The following are three independent situations. 1. Sandhill Rewards Inc. provides rewards services to licensees. Sandhill records service revenue related to rewards (granted as reward vouchers, which can be redeemed at a variety of retailers) and recognizes the cost of redemptions in the year vouchers are sold to licensees. Sandhill's past experience indicates that only 80% of the vouchers sold to licensees will be redeemed. Sandhill's liability for stamp redemptions was $12,693,900 at December 31, 2024. Additional information for 2025 is as follows. Service revenue from vouchers sold to licensees Cost of redemptions (vouchers sold prior to 1/1/25) $8,614,200 If all the vouchers sold in 2025 were presented for redemption in 2026, the redemption cost would be $5,173,300. What amount should Sandhill report as a liability for voucher redemptions at December 31, 2025? Liability for stamp redemptions at December 31, 2025 $ Consumer expiration date Total face amount of coupons issued Total…

Answer please.it's an accounting question.it would be really helpful. surely will upvote

Zach Allen is the accountant for a large retail company. It is now the end of the accounting period and time to prepare financial statements. Zach has requested that the company's sales manager give him an estimate of uncollectible credit sales for the period. Zach says that he needs this information so that he can record bad debt expense. The sales manager tells Zach to "not worry about it. You can just record the expense as the accounts become uncollectible." Comment on this situation and who you think is right. Do you see any problem with the "wait and record approach"?