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KiRa [710]
3 years ago
5

BE18.8 (LO 2) Presented below are three revenue recognition situations. a. Groupo sells goods to MTN for $1,000,000, payment due

at delivery. b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days. c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000. Indicate the transaction price for each of these situations and when revenue will be recognized.
Business
1 answer:
dem82 [27]3 years ago
8 0

Answer:

a. Groupo sells goods to MTN for $1,000,000, payment due at delivery.

  • transaction price = $1,000,000
  • revenue recognized once the goods are delivered

No journal entry is required until goods are delivered and accepted.

b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days.

  • transaction price = $800,000
  • revenue recognized immediately since goods were already delivered

The journal entry:

Dr Accounts receivable 800,000

    Cr Sales revenue 800,000

c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000.

  • transaction price = $480,000
  • revenue recognized immediately since goods were already delivered

The journal entry:

Dr Notes receivable 500,000

    Cr Sales revenue 480,000

    Cr Discount on notes receivable 20,000

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Answer:

a.

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4 years ago
Complete the following statements to demonstrate your understanding of the relationships among the different structures of the F
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Answer:

1. Chairman

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3 years ago
Based on the case and previous calculations, please answer the following short answer questions. Note: Your instructor will need
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Question Completion:

see Exhibit 4 attached.

Answer:

1. The largest and smallest divisions by net sales in 2017:

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Explanation:

The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%.  In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%.  The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division.  Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.

Download docx
4 0
3 years ago
Imagine that the price elasticity of demand for non-mandatory veterinary vaccines for your dog is unit elastic. Initially, price
aliya0001 [1]

Answer:

c. $100,000

Explanation:

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So in this case, the new revenue is

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= $100 × $1,000

= $100,000

Hence, the correct option is c.

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3 years ago
The _________ is the content or general message of a conversation or what the conversation is about.
denis23 [38]
The MAIN IDEA is the content or general message of a conversation or what the conversation is about.

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3 years ago
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