Below are the footnotes to Barnes & Noble Inc.'s 2012 annual report and membership information obtained...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below are the footnotes to Barnes & Noble Inc.'s 2012 annual report and membership information obtained from its Website: The Barnes & Noble Member Program offers members greater discounts and other benefits for prod- ucts and services, as well as exclusive offers and promotions via e-mail or direct mail for an annual fee of $25.00, which is non-refundable after the first 30 days. Revenue is recognized over the twelve- month period based upon historical spending pattems for Barnes & Noble Members. The Bames & Noble Member Program entitles Members to the following benefits: 40% off the list price of the current hardcover Bames & Noble Store Bestsellers. 10% off the marked Barnes & Noble sale price of other eligible items. Free Express Shipping. Periodic special promotions at Bames & Noble Stores and at BN.com. . a. Explain in layman's terms how Barnes & Noble accounts for the cash received for its membership program. When does Barnes & Noble record revenue from this program? b. How does Barnes & Noble's balance sheet reflect those membership fees? Does the 40% discount affect Barnes & Noble's income statement when membership fees are received? Below are the footnotes to Barnes & Noble Inc.'s 2012 annual report and membership information obtained from its Website: The Barnes & Noble Member Program offers members greater discounts and other benefits for prod- ucts and services, as well as exclusive offers and promotions via e-mail or direct mail for an annual fee of $25.00, which is non-refundable after the first 30 days. Revenue is recognized over the twelve- month period based upon historical spending pattems for Barnes & Noble Members. The Bames & Noble Member Program entitles Members to the following benefits: 40% off the list price of the current hardcover Bames & Noble Store Bestsellers. 10% off the marked Barnes & Noble sale price of other eligible items. Free Express Shipping. Periodic special promotions at Bames & Noble Stores and at BN.com. . a. Explain in layman's terms how Barnes & Noble accounts for the cash received for its membership program. When does Barnes & Noble record revenue from this program? b. How does Barnes & Noble's balance sheet reflect those membership fees? Does the 40% discount affect Barnes & Noble's income statement when membership fees are received?
Expert Answer:
Answer rating: 100% (QA)
A Barnes Noble accounts for the cash received from its membership program by recognizing revenue ove... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Ripley Corporation has supplied the following information obtained from its standard cost system in June: Standard price of direct materials . . . . . . . . . . . . . . . . . . . . . . . . $6 per...
-
Foding Corporation has supplied the following information obtained from its standard cost system in May: Standard price of direct materials . . . . . . . . . . . . . . . . . . . . . . $7 per pound...
-
The OASDI program pays survivor benefits to eligible family members based on the deceased worker's earnings record. Explain whether each of the following persons would be eligible for OASDI survivor...
-
Which form of interpersonal communication is best for long-term retention? Why? Which form is best for getting across subtle nuances of meaning? Why?
-
Find V o in the figure using Thevenin?s theorem 4 kn Vo 2 kn 3 mA 12 kn 4 kn 2 kn 1 mA 6 v(+
-
Lee Ann, Inc., has declared a $7.50 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld when the...
-
Why is the cost of capital not an accounting concept?
-
Sentinel Security Services was established on March 15, 2012, to provide security services. The services provided during the remainder of the month are listed below. Mar. 18. Issued Invoice No. 1 to...
-
18. [-/5 Points] DETAILS LARM Use the order of operations to evaluate (a) -16-3222 (b) -11 + 2 x 32+ (-3) (c) -(-5-105) + (-8) (d) 5 2[8 (-3 x 2)] -
-
The Specialty Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the averages for the industry. The CEO has...
-
(a) Suppose the slope of the curve y = f(x) at (5,8) is. Find f'(y) at y = 8. (b) Find (f)'(2) if f(x) = x + x.
-
Jan. 1 Inventory 122 units at $4 each 4 Sale 101 units at $8 each 11 Purchase 164 units at $6 each 13 Sale 132 units at $9 each 27 20 27 20 Purchase 169 units at $6 each Sale 106 units at $10 each...
-
The following are the transactions for the month of July. July 1 July 13 Beginning Inventory Purchase Units 58 Unit Cost $ 10 Unit Selling Price 290 11 July 25 July 31 Sold Ending Inventory (100) 248...
-
Assume the group, in whole or in part, is able to proceed with the hotel development project, and a possible site has been identified for the first hotel. You set up a conference call with the group,...
-
Provide a summary of different Ipv6 routing protocols. How are they similar to IPv4 protocols? How are they different? What is SLAAC (Stateless Address Auto Configuration)? How does it work? What are...
-
Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $15 per share). At the time he started working for Cutter Corporation three years ago,...
-
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in Its budgeting and performance reports-the number of courses and the...
-
A consumer magazine is evaluating five brands of trash compactors for their effectiveness in reducing the volume of typical household products that are discarded. In the experiment, each block...
-
Mallory Corporation has a calendar year-end. The corporation has paid estimated payments of $10,000 during 2012 but still owes an additional $5,000 for its 2012 tax year. a. When is the 2012 tax...
-
During 2012, Tom sold Sears stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000. The bonds were purchased 2 months ago for $30,000....
-
Steve Drake sells a rental house on January 1, 2012, and receives $130,000 cash and a note for $55,000 at 10 percent interest. The purchaser also assumes the mortgage on the property of $45,000....
-
What role does MIS play? Do they have a chief information officer? Do they have a Web site? How in-depth do you consider it to be? You may wish to compare it with other sites.
-
The Barings desk on the trading floor is abandoned. The computer screens are dead. The little Union Jack that was sitting on one of the terminals a few days ago has mysteriously vanished. This little...
-
Look at the annual report of an MNE. As you read about the product lines and geographical operations, what kind of organizational structure would you guess the company has?
Study smarter with the SolutionInn App