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ozzi
3 years ago
6

Gunk Goblin sells vacuums and just launched a policy where customers have the right to return a vacuum during a three-year perio

d following purchase. Gunk management has no experience under this sort of policy and does not believe it can accurately estimate returns. What is the longest period of time that Gunk may have to wait before recognizing revenue associated with one of these sales?
Business
1 answer:
babymother [125]3 years ago
8 0

Answer:

3 years after the right of return has expired

Explanation:

Generally accepted accounting principles (GAAPs) specify the scenario wherein revenue is to be recognized.

As per the accrual principle, revenue is to be recognized when earned and not when actual cash is received against it.

In the given case, the company allows it's customers to return the products sold within a period of three years. Hereby, the company must make a provision for contingency against future returns.

Here, the business should be able to estimate the number of vacuums that would be returned. Here, the company is unable to do so owing to no past record or history.

Hence, the company may have to wait till maximum period of 3 years i.e the time when products can no longer be returned, for recognizing revenue associated with the sales.  

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Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of
JulijaS [17]

Answer:

Equivalent unit of conversion = Unit completed and transferred out+Ending WIP*Percent completion

= 15000+(3000*75%)

Equivalent unit of conversion = 17250

Total cost of conversion cost = 4500+32450+18710 = 55660

Cost per equivalent unit of conversion Cost = Total Cost/Equivalent unit = 55660/17250 = 3.23

6 0
2 years ago
You are offered the following investments: You can invest $500 today and receive $600 in 5 years. The investment is low risk. Yo
grin007 [14]

Answer:

500

Explanation:

6 0
2 years ago
Daniels Corporation uses the step-down method to allocate service department costs to operating departments.
larisa86 [58]

Answer:

C 503,980 dollars

Explanation:

\left[\begin{array}{ccccc}&General&Physical&Sales&After-sales\\$General&&2,000&27,000&14,000\\$Physical&1,000&&38,000&7,000\\$Direct \: Cost&36,550&70,300&412,500&480,880\\$Allocate G&-36,550&1,700&22,950&11,900\\$Subtotal&0&72,000&435,450&492,780\\$Allocate P&0&-72000&60,800&11,200\\$Total&&&496,250&503,980\\\end{array}\right]

We determinate each service deparment rate:

general: 36,550 / (2,000 + 27,000 + 14,000) = 0.85

we then assign cost of general department and repeat the process for physical

then for physical we do the same:

72,000 / (38,000 + 7.000) = 1.60

5 0
3 years ago
Next, imagine that you are a manager of a start-up company with limited cash and resources. In your initial post, describe the t
marysya [2.9K]

Answer: I want employees who are like-minded with the values and best practices in my company .

Explanation: Having a candidate attraction strategy that speaks to your company culture will increase the likeliness of attracting and engaging talent who will thrive and stay with you longer.Hiring talent that doesn’t align with your company culture creates personal conflict within the employee that will no doubt impact their work and those they work with It’s your responsibility as an employer to set your employees up for success, and making sure their values and work ethic is in line with your culture before extending an offer is the very first thing you can do for them and the rest of your workforce.Company culture expresses what the organization’s expectations, values and beliefs are and how the organization interacts with both its own employees and the people in the communities in which they do business .

8 0
2 years ago
Annette, an energetic college junior, had been involved in the selling of goods for a number of years online. Annette supported
bagirrra123 [75]

Answer:.c. Yes, deceptively passing one's goods off as designed by someone else is wrong

Explanation:This is like plagiarism or illegally coping of one's own music, anything that has to do with copying someone else work is illegal be wise you are taking someone else's work and jeopardizing its value when you make it a copy.

People will think these copies are original Gorgo Ormani and because it is likely that Annette will make them cheaper they will buy more of these fake items instead of buying the original hence she will also be negatively affecting the market for this brand.

You can't copy something that isn't yours because you don't have that right hence this is deceptive action and legally wrong.

5 0
3 years ago
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