Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the good buy furniture company sells manufacturer

The Good Buy Furniture Company sells manufacturer close outs at bargain prices. It uses the...

70.2K

Verified Solution

Question

Accounting

The Good Buy Furniture Company sells manufacturer close outs at bargain prices. It uses the specific identification method for inventory control, the full accrual method for GAAP conformity and the installment method for revenue recognition. It sells a 4 room set of furniture (living room, dining room and 2 bedrooms) to a customer for $8,190. Mark up on the merchandise is 80%. Terms are a twenty percent down payment and 8 equal monthly payments for the balance (interest free).

Required 1: Assuming no other transaction happened, what revenue is recognized from this transaction in the month of sale? $

Required 2: Assuming no other transaction happened, what is the Cost of Goods Sold recognized in the month of sale? $ Required 3: Assuming no other transaction happened, what revenue is recognized in month 5? $

Required 4: Assuming no other transaction happened, what is the Gross Margin of month 5? $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Please elaborate on the differences and the relationships between Brownian motion, Wiener process and Levy process,...

Programming
1.2K views

Research to identify different virtualization platforms. Provide a discussion of any resources that you find or...

Psychology
1.2K views

There is a long history of the use of child soldiers. Discuss how the use of...

Basic Math
1.2K views

1. Counting the number of people who have been exposed to the Zika virus is an example...

Basic Math
1.2K views

Complete the following truth table pVq r pqr 0000 0 0 1 0 1 0...

Basic Math
1.2K views

Sally bought an item and the dealer told her that its change in value is...

Calculus
1.2K views

If the price charged for a candy bar i X

Algebra
1.2K views

Correct Find the zero s of the equation Round decimal values to two places If...

Accounting
1.2K views

Question 1(1 point) Kitchen Convenience Company manufactures two products-toaster ovens and bread machines....

Accounting
1.2K views

Allstate sells auto insurance to many customer segments. Consider a segment of customers whose semiannual...

Accounting
1.2K views

Exercise T4-1 Swifty WaterWorks manufactures snorkel gear. During the past month, Swifty purchased 4,200 pounds...

Accounting
1.2K views

Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell...