Question: What is the proper accounting for a wholly unperformed contract
What is the proper accounting for a wholly unperformed contract?
Answer to relevant QuestionsIf a seller enters into more than one contract with a specific customer, when should the contracts be combined and treated as a single contract? On January 1, Morris Company offered a customer a 10% trade discount if the customer purchases 1,000 units of an item within the next 6 months. Each item sells for $ 100. Based on the customer’s previous purchase history, ...Lark Corporation appropriately determined that each of its long term projects represents a single performance obligation that is satisfied over time. At the end of the current year, Lark estimates that its costs to complete ...Cass Company enters into a contract with Dearborn Inc. to sell it $ 50,000 of goods with delivery on May 10, 2017. Cass manufactured the goods at a cost of $ 33,000. The contract is signed on April 15, 2017, at which time ...On December 1, 2017, AwakeAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers. The candy bars sell for $ 3 per bar. In addition, AwakeAllNight pays Campus Grocers a $ 900 “ CampusGrocersa$900“ ...
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