Barbor sofa order On December 11, we received an order from a long-time customer, Barbor Furniture Ltd.
(Barbor), for 14 sofas, at a total price of $22, 100. Barbor provided a deposit of $9, 000, which I recorded as revenue when it was received on December 13. The order was completed on December 28, but because our delivery trucks were out of service, it wasn't delivered to Barbor until January 2. Our yard was broken into on December 29, and a number of items, including all the delivery trucks, were vandalized and needed repairs.
Barbor agreed to the January 2 delivery at which time we billed them for the order. I recorded the remaining balance of the order ($13, 100) as sales and accounts receivable on December 28 in the current year-end financial statements. The sofas, which have a cost of $920 each, were excluded from the ending inventory count that was performed and completed on December 31.
Lumber inventory
We purchased lumber (raw materials) costing $4, 410, which was received on December 31. The lumber was not put into production until January 3. The lumber arrived just after we had completed the inventory count, so it was not included in the count, and the invoice was not recorded in accounts payable. The terms of the purchase were "FOB Destination." Saw Repair In July, one of our saws broke down. The cost of $11, 500 in repairs is included in repairs and maintenance. The repair company claims the repairs will increase the saw's service capacity, cut production time by 10% and reduce waste by 5-10%. The manufacturing staff really did see a difference in the performance of the saw after the repairs. The saw is expected to last another five years beyond the date of repair.
Modern uses the straight-line method for amortization purposes.
National retail chain agreement On November 29, a sales agreement was signed between Modern and a large national retail chain; Modern agreed to sell $50, 000 of furniture per month over the next three years and provide warranty services on the furniture for a period of five years, jasgill1 Sticky Note Revenue recognition. At what point in time is revenue recognized, was it recognized correctly?
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Sticky Note
Similar to revenue recognition, when do you actually recognize this as an expense, R&R? When does it transfer, Issue, significance, recommendation jasgill1 Highlight jasgill1 Highlight jasgill1 Highlight jasgill1 Highlight jasgill1 Highlight jasgill1 Sticky Note Is it capital vs current. Read up on betterment.
Core 1 Week 1 Immersive Case Exhibit Asha's Financial Statement Notes
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Commencing March 1 the following year. Modern received a bonus of $75, 000 at the time of signing the sales agreement, which I recorded as revenue. Normally Modern sells its warranty separately from ...
