Question

The current (commonly used) accounting treatment for premiums and coupons requires that the costs should be...

The current (commonly used) accounting treatment for premiums and coupons requires that the costs should

be recorded at the maximum possible redemption cost in the year of the related sales.

be recorded at the total estimated redemption cost in the year of the related sales.

be recorded in the year(s) that the redemption is expected to occur.

not be recorded at all.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Current (commonly used ) accounting treatment for premiums and coupans requirs that the costs should

Answer :

be recorded at the total estimated redemption cost in the year of the related sales.

Wrong Option

be recorded at the maximum possible redemption cost in the year of the related sales. It is wrong option. Becuase it is recorded at estimated redemption cost not at maximum possible redemption cost.

be recorded in the years that the redemption is expected to occur. It is again wrong option. Because it has to be recorded in the related sales year not in the year of redemption expected to occur.

not be recorded at all.It Is again wrong option because it has to be recorded in the related sales year at estimated redemption cost.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following amounts would be used to calculate net revenues for the current year?...
Which of the following amounts would be used to calculate net revenues for the current year? All of the other answer choices are correct. Total sales revenue for the current year. Estimated sales, returns, and allowances that will occur next year as a result of sales transactions in the current year. Actual sales returns, allowances, and discounts for the current year.
Splish Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and...
Splish Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Splish uses two sales promotion techniques—warranties and premiums—to attract customers. Musical instruments and sound equipment are sold with a 1-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 1% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet...
SECTION 8: OIL AND GAS OPERATIONS Statement 143 will have a major impact on accounting for...
SECTION 8: OIL AND GAS OPERATIONS Statement 143 will have a major impact on accounting for asset retirement obligations related to oil and gas properties. T/F Statement 143 amends Statement 19. T/F The legal obligation for dismantlement, restoration, and abandonment costs generally will be incurred when a well is drilled or when a platform or other equipment is put in place. T/F Enterprises with oil and gas operations outside the U.S. need not consider the specific asset retirement obligations in...
1)During FY 2019, Dorchester Company plans to sell Widgets for $15 a unit. Current variable costs...
1)During FY 2019, Dorchester Company plans to sell Widgets for $15 a unit. Current variable costs are $5 a unit and fixed costs are expected to total of $100,000. Use this information to determine the dollar value of sales for Dorchester to breakeven.  (Round to the nearest whole dollar) 2) Baltimore Company uses a job order cost system and applies overhead based on estimated rates.  The overhead application rate is based on total estimated overhead costs of $305,000 and direct labor hours...
Trotman’s Variety Store is completing the accounting process for the current year just ended, December 31....
Trotman’s Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during the year have been journalized and posted. The following data with respect to adjusting entries are available: Wages earned by employees during December, unpaid and unrecorded at December 31, amounted to $3,300. The last payroll was December 28; the next payroll will be January 6. Office supplies on hand at January 1 of the current year totaled $580. Office supplies purchased...
Property, plant and equipment are: Tangible assets used in the operation of a business having a...
Property, plant and equipment are: Tangible assets used in the operation of a business having a useful life of more than one accounting period. Current assets. Long-term investments. Intangible assets used in the operations of a business having a useful life of more than one accounting period. Tangible assets used in the operation of business having a useful life of less than one accounting period. The relevant factor(s) in calculating depreciation is (are): Cost. Residual value. Useful life. Both cost...
A production facility is currently utilizing carbon steel tubing. The current process requires injection of chemicals...
A production facility is currently utilizing carbon steel tubing. The current process requires injection of chemicals to control tubing corrosion due to high temperatures, pressure, and corrosive chlorides in the product flow. This injection process is estimated to cost the company $600,000 next year (at the end of year 1). This year 1 amount would escalate 5% per year over the next 5 years (years 2 through 6). The escalation in price behaves just like compound interest accruing on the...
MANAGERIAL ACCOUNTING - TRUE OR FALSE? (IF YOU ARE NOT ABLE TO ANSWER THEM ALL, PLEASE...
MANAGERIAL ACCOUNTING - TRUE OR FALSE? (IF YOU ARE NOT ABLE TO ANSWER THEM ALL, PLEASE SKIP. THANK YOU) Direct materials costs and indirect materials costs are considered “manufacturing overhead”. All manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead. The total cost of a finished product generally contains equal amounts of materials, labor, and overhead costs. Both direct labor cost and indirect labor cost are product costs. Period costs include selling...
From the following list, discuss which are incremental cash flows and therefore should be included in...
From the following list, discuss which are incremental cash flows and therefore should be included in your capital investment calculations. a.. A firm has a parcel of land that can be used for a new plant site, be sold, or be used for agricultural purposes.             b.   A new product will generate new sales, but some of those new sales will be from customers who switch from one of the firm’s current products.             c.   The interest paid on funds...
Potter Corporation sells office supplies to government agencies. At the beginning of the current quarter, the...
Potter Corporation sells office supplies to government agencies. At the beginning of the current quarter, the company reports the following selected account balances:   Current quarter account balances:   Cash 10,000   Accounts Receivables 200,000   Current Payable 85,000   Potter's management has made the following budget estimates regarding operations for the current quarter:   Sales (estimated) 500,000   Total cost and expenses (estimated) 400,000 (see breakdown below) Debt service payment (estimated) 145,000   Tax liability payment (estimated) 45,000   Of Potter's total costs and expenses, $30,000 is quarterly...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT