On March 18, 2020, Happy Books entered into a contract with Walmart to provide a monthly...

 

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On March 18, 2020, Happy Books entered into a contract with Walmart to provide a monthly order of 500 books. The details are as follows. The books are priced at $8 each, however, Happy Books normally sells them for $11/book. The shipments will happen on the 1* of the month, starting in April 2020. A delivery fee of $150 will be added to each shipment. Happy Books charges $300 for large deliveries. Payments are made by Walmart to Happy Books on the 30th of every month. i.e. for the April 1, 2020 order, Walmart will make payment on April 30th. Explain when revenue should be recognized for each source of revenue using the IFRS 15 revenue recognition criteria. QUESTION #3 Mr. Pulitzer, a manager at Happy Books Ltd. commented that, "Recognizing revenue and expenses in different ways has no effect on the underlying economic activity of an entity." Explain why he is correct. (You may want to use examples in your explanation) On March 18, 2020, Happy Books entered into a contract with Walmart to provide a monthly order of 500 books. The details are as follows. The books are priced at $8 each, however, Happy Books normally sells them for $11/book. The shipments will happen on the 1* of the month, starting in April 2020. A delivery fee of $150 will be added to each shipment. Happy Books charges $300 for large deliveries. Payments are made by Walmart to Happy Books on the 30th of every month. i.e. for the April 1, 2020 order, Walmart will make payment on April 30th. Explain when revenue should be recognized for each source of revenue using the IFRS 15 revenue recognition criteria. QUESTION #3 Mr. Pulitzer, a manager at Happy Books Ltd. commented that, "Recognizing revenue and expenses in different ways has no effect on the underlying economic activity of an entity." Explain why he is correct. (You may want to use examples in your explanation)

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Happy Books entered into a Contract Walmart is 500 books opt to sell for walmat for s8 but usualt... View the full answer