Hello, please make sure to solve this questions into 4 categories and please follow the CPA FORMAT. 1- Issue2- HANDBOOK ANALYSIS (CPA FORMAT FOR EXAMPLE IFRS OR ASPE)3- Recomendation4- Calculations. Please note put one issue which is the warranty and talk about this issue and handbook analysis based on the warranty

February 15, 2019, the Chief Operating Ofcer of Larson Industries, Pete Moreen, announced a major step forward for the company: Today, we have entered into an agreement to sell our industryleading product, the AM300, to Dynamic Wholesale, Inc. Starting on May 31, Dynamic will begin offering the AM300 and our gift cards to its customers. Dynamic is one of the largest wholesalers of consumer goods in the country, and this agreement is vital to the growth of Larson Industries and the brand awareness of the AM300. This morning I spoke with Dynamic's Vice President of Logistics, Suzanne Roberts, who is very excited to carry our agship product in order to better serve the Dynamic customer base. Your Role and Task As planned, Larson shipped the goods (and gift cards) to Dynamic on May 15, and all items were inspected and formally accepted by Dynamic personnel and were delivered to the warehouses within ten days, available to be sold to Dynamic customers on May 31. In preparation for closing the company's books for the May 31 yearend, Chief Financial Officer Catherine Budge is considering the appropriate accounting treatment of the transactions with Dynamic, including any issues that may impact the company in subsequent accounting periods. This agreement with Dynamic has many unique features that Larson has not yet encountered. As an experienced accountant, you have been asked to provide assistance to the CFO by researching appropriate financial reporting guidance to determine the proper course of action for all of the relevant aspects of this sales contract. Detailed information on the two companies and their agreement is provided below. Larsgn Industries Larson Industries is one of the leading manufacturers of specialty carpentry and premium crawork tools. The AM300 is the company's most popular, user-friendly, and top-selling product, yet the company also produces other items for specialized purposes. The tools range in retail price anywhere from $100$350. However, each product is complemented by a number of accessories, most of which are sold separately from $055$935. The standard AM300 is sold with three hardware accessories included accessories that have proven to be the most popular with consumers. Larson sells its products (1} direct to consumers via its website and factory outlet stores located in large shopping centers and (2) through several retail hardware stores. With the Dynamic agreement in place, Larson expects that directtoconsumer sales will account for approximately 50 percent of the company's total sales in the coming years, while 30 percent will be sold through Dynamic and 20 percent through other retailers. 0f the directto-consumer sales, approximately 65 percent will come from the factory outlets, with the remaining transactions taking place via the company's website. The accessories are an integral part of its main products, and Larson has determined that 78 percent of customers who purchased the main products have also purchased additional accessories via the website or outlets. The company primarily markets its products through its website, social media, and targeted TV ads. The company also holds product demonstrations at a variety of industry trade shows, typically with a 15 a n..- no