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Assume the following scenarios.
Scenario 1: During 2012, IBM provides consulting services on its mainframe computer for $10,000 on account. The customer does not pay for those services until 2013.
Scenario 2: On January 1, 2012, Gold’s Gym sells a one-year membership for$1,200 cash. Normally, this type of membership would cost $1,500, but the company is offering a 20% “New Year’s Resolution” discount.
Scenario 3: During 2012, The Manitowoc Company provides shipbuilding services to the U.S. Navy for$300,000. The U.S. Navy will pay $100,000 at the end of each year for the next three years, beginning in 2012.
Scenario 4: During 2012, Goodyear sells tires to customers on account for$24,000. Bythe end of the year, collections total $20,000. At the end of 2013, it becomes apparent that the remaining$4,000 will never be collected from customers.
Required: For each scenario, calculate the amount of revenue to be recognized in 2012.