Problems 42 & 43

a. Contract modification of distinct goods not reflective of standalone selling prices. b. Contract modification of non-distinct goods. Contract modification of distinct goods at standalone selling prices. June 5, 2020, Quantum Corp. sold 500 units to a manufacturer. Payment is due in 30 days according to the credit arrangements with this customer. However, the units will not be shipped to the manufacturer for 2 ks due to an unexpected change in the manufacturer's production schedule. Quantum Corp. has isolated its in its storage facility and will ship the items when the manufacturer can accommodate the items. If the Brief Exere Timing of Revenue Ba-and-Hokd the uni were shipped to the manufacturer on July 6, 2016, when would Quantum Corp. recognize revenue? Arrangement LO8 units azine distributor ships a supply of weekly issue s to a chain of grocery stores on the first day of the month Brief Exercise 7-43 Rec g Revenue Arrangement LO8 of March 2020, The grocery chain will receive a 20% commissi issue is dropped off at the grocery store. At what point in the process does the distributor recognize revenue? Indicate how each of the following contractual arrangements would be treated for accounting purposes: (1) leas- on on any magazines sold. Any magazines not sold at the end of the week are returned to the distributor at the same time that the inventory of the next weekly Brief Exercise 7-44 ing agreement, (2) financing agreement, or (3) sale with the right of return. Arrangements LO8 a. Contract obligates the seller to repurchase merchandise sold to a customer where the repurchase price b. Contract obligates the seller to repurchase merchandise sold to a customer where the repurchase price c. Contract gives the right to the seller to repurchase merchandise sold to a customer where the repurchase - d. Contract gives the right to the seller to repurchase merchandise sold to a customer where the repurchase e. Contract gives the right to the customer to obligate the seller to repurchase merchandise sold to a customer f. Contract gives the right to the customer to obligate the seller to repurchase merchandise sold to a cus- is greater than the original selling price is less than the original selling price. price is less than the original selling price. price is equal to the original selling price. where the repurchase price is less than the expected market value omer where the repurchase price is greater than the expected market value and greater than the original selling price lished by the airline companies that fulfill the promised flights. After purchase, customers must contact airline companies directly for changes to or questions about their airline tickets. The customer pays for the totaling Recording Principa and Agent Revenue Entries LOB ir Inc. sells discounted airline tickets to travelers on three major airlines. The discounted airfares Brief Exercise 7-45 cket through the website of Travel-by-Air. Travel-by-Air forwards the payment for the airline tickets to l0fh commission fec, In August of 2020, Travel-by-Air collected cash from customers