Consider each of the following scenarios for Bunsen Suppliers Company: The common practice...
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Consider each of the following scenarios for Bunsen Suppliers Company: The common practice of Bunsen Suppliers is to obtain a written sales agreement. When an Anson Store called on the phone with an urgent need, however, Bunsen orally agreed to deliver goods in exchange for $ then immediately delivered these goods to Anson without a written agreement. Bunsen Suppliers has a written agreement to deliver goods to Comfort Inc. for $ per unit. The price will drop to $ per unit for all units if Comfort purchases more than units per month. Bunsen Suppliers has a written agreement with Darwin Company to deliver units of product each Saturday afternoon. Darwin can alter the quantity or cancel a delivery any time before noon Saturday. Required: Determine if a contract exists for each of these scenarios and comment on revenue recognition issues.
Consider each of the following scenarios for Bunsen Suppliers Company:
The common practice of Bunsen Suppliers is to obtain a written sales agreement. When an Anson Store called on the phone with an urgent need, however, Bunsen orally agreed to deliver goods in exchange for $ then immediately delivered these goods to Anson without a written agreement.
Bunsen Suppliers has a written agreement to deliver goods to Comfort Inc. for $ per unit. The price will drop to $ per unit for all units if Comfort purchases more than units per month.
Bunsen Suppliers has a written agreement with Darwin Company to deliver units of product each Saturday afternoon. Darwin can alter the quantity or cancel a delivery any time before noon Saturday.
Required:
Determine if a contract exists for each of these scenarios and comment on revenue recognition issues.
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