User Account

All Pages

What situations would a reasonable estimate of returns be

Assignment Help Accounting Basics
Reference no: EM132623214

In conducting year-end inventory counts, your audit team is debating the impact of the client's right of return policy both on inventory valuation and revenue recognition. The assistant controller argues that there is no need to worry about the return policies since they have not changed in a while. The audit senior wants a more authoritative answer and has asked you to conduct some research of the authoritative literature before she presses the point with the client.

Question 1: What is the authoritative guidance for revenue recognition when right of return exists?

Question 2: When is this guidance important for a company?

Question 3: Sales with high rates of return can ultimately cause inventory to be misstated. Why are returns allowed? Should different industries be able to make different types of return policies?

Question 4: In what situations would a reasonable estimate of returns be difficult to make?

Reference no: EM132623214

Questions Cloud

What is bonita industries ending inventory : December 31 inventory at year-end prices was $429400, and the price index was 113. What is Bonita Industries's ending inventory
Explain both of behaviors using key points of hull theory : Alan drinks a couple of beers while watching sports on television. Cynthia has a glass of wine with dinner. Explain both of their behaviors using key points.
Discuss the implications of using fair value measurements : Discuss the implications of using fair value measurements for long-lived assets. Comment on the advantages and disadvantages of each method
List three types of goods that are classified as inventory : List three types of goods that are classified as inventory. What characteristics will automatically exclude an item from being classified as inventory?
What situations would a reasonable estimate of returns be : What is the authoritative guidance for revenue recognition when right of return exists? When is this guidance important for a company?
What is the ending balance of accounts receivable : Sold goods for $10,000 receiving $8,000 in cash and charging $2,000 to a costumer's credit account. What is the ending balance of Accounts Receivable
Parties to contracts negotiated and executed in texas : Assume Texas has a long-arm statute permitting the exercise of jurisdiction over all parties to contracts negotiated and/or executed in Texas.
What disorder does your character or person have : Briefly describe the source/character of your example of someone exhibiting the symptoms of an Anxiety disorder. Provide the character's name.
What are the net changes to the accounts impacted : A firm sold goods for $50,000. $10,000 was paid in cash, The goods originally cost $30,000. What are the net changes to the accounts impacted by transaction

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd