Homework Answers
Should the entity determine that there is no separate performance obligation, the warranty should be accounted for as it has been under previous guidance ASC 460 Guarantees, and it is not affected by the new revenue recognition standard.
However should a separate performance obligation be determined to exist the entity would then need to allocate a portion of the transaction price to the separate service and recognize the related revenue when (or as) performance is completed. Additionally, disclosure requirements state the following qualitative information must be disclosed for nonpublic entities: when the performance obligation is typically satisfied, significant payment terms, the nature of the goods or services promised, obligations for returns or refunds, and the identification of the type of warranty and related obligations.
Add Answer to:
6. How does one determine whether a warranty constitutes a separate performance obligation within a contract?
Problem 6-2 (Algo) Performance obligations; warranties; option (L06-2, 6-4, 6-5) Creative Computing sells a tablet computer...
Problem 6-2 (Algo) Performance obligations; warranties; option (L06-2, 6-4, 6-5) Creative Computing sells a tablet computer called the Protab. The 5970 sales price of a Protab Package includes the following • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months • A coupon to purchase a Creative Probook e-book reader for $250, a price that represents...
please complete the required 1,2, and 3 Check my work Problem 6-2 (Algo) Performance obligations; warranties;...
please complete the required 1,2, and 3
Check my work Problem 6-2 (Algo) Performance obligations; warranties; option [LO6-2, 6-4, 6-5) Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following: • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a...
Problem 6-2 (Static) Performance obligations; warranties; option (LO6-2, 6-4, 6-5) Creative Computing sells a tab...
Problem 6-2 (Static) Performance obligations; warranties; option (LO6-2, 6-4, 6-5) Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following: • One Protab computer, • A6 month limited warranty. This warranty quarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $200, a price that represents...
Determine how many separate performance obligations are included in the following separate contract examples, and make...
Determine how many separate performance obligations are included in the following separate contract examples, and make simple explanation. a. A retailer enters into a contract with a customer to sell an electric toothbrush, bundled with the replacement parts for the toothbrush. The retailer also sells the replacement parts and toothbrushes separately. The customer can use the toothbrush without the replacement parts, but the replacement parts have no use without the toothbrush. How many performance obligations exist in the bundling of...
Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects.
Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When customers purchase a Tornado, they also have the option to purchase an extended three-year warranty that covers any breakage or maintenance. The extended warranty sells for the same amount regardless of whether it is purchased at the same time as the Tornado or at some other time. How many performance obligations exist in the implied contract for the purchase of a vacuum...
annect 1 Creative Computing sells a tablet computer called the Protab. The $920 sales price of...
annect 1 Creative Computing sells a tablet computer called the Protab. The $920 sales price of a Protab Package includes the following: • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. . A coupon to purchase a Creative Probook e-book reader for $330, a price that represents a 40% discount from the regular Probook price...
Vroom Vacuums sells the Tomado vacuum cleaner. Each Tornado has a one-year warranty that covers any...
Vroom Vacuums sells the Tomado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When customers purchase a Tomado, they also have the option to purchase an extended three-year warranty that covers any breakage or maintenance. The extended warranty sells for the same amount regardless of whether it is purchased at the same time as the Tornado or at some other time. How many performance obligations exist in the implied contract for the purchase of a...
Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab...
Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab Package includes the following: One Protab computer. . A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e-book reader for $400, a price that represents a 50% discount from the regular Probook price of $800. It is...
When does a company satisfy a performance obligation? Select one: a. When you receive full payment...
When does a company satisfy a performance obligation? Select one: a. When you receive full payment from customers for the goods or services you sold. b. When you transfer control of the goods or services to your customers. c. When the monetary amount (price or amount) of the transaction or contract is determined. d. From the moment you receive a partial payment in exchange for goods or services.
Creative Computing sells a tablet computer called the Protab. The $860 sales price of a Protab...
Creative Computing sells a tablet computer called the Protab. The $860 sales price of a Protab Package includes the following: • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $675, a price that represents a 25% discount from the regular Probook price of $900....
Problem 6-2 (Algo) Performance obligations; warranties; option (L06-2, 6-4, 6-5) Creative Computing sells a tablet computer called the Protab. The 5970 sales price of a Protab Package includes the following • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months • A coupon to purchase a Creative Probook e-book reader for $250, a price that represents...
please complete the required 1,2, and 3
Check my work Problem 6-2 (Algo) Performance obligations; warranties; option [LO6-2, 6-4, 6-5) Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following: • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a...
Problem 6-2 (Static) Performance obligations; warranties; option (LO6-2, 6-4, 6-5) Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following: • One Protab computer, • A6 month limited warranty. This warranty quarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $200, a price that represents...
annect 1 Creative Computing sells a tablet computer called the Protab. The $920 sales price of a Protab Package includes the following: • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. . A coupon to purchase a Creative Probook e-book reader for $330, a price that represents a 40% discount from the regular Probook price...
Vroom Vacuums sells the Tomado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When customers purchase a Tomado, they also have the option to purchase an extended three-year warranty that covers any breakage or maintenance. The extended warranty sells for the same amount regardless of whether it is purchased at the same time as the Tornado or at some other time. How many performance obligations exist in the implied contract for the purchase of a...
Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab Package includes the following: One Protab computer. . A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e-book reader for $400, a price that represents a 50% discount from the regular Probook price of $800. It is...
Creative Computing sells a tablet computer called the Protab. The $860 sales price of a Protab Package includes the following: • One Protab computer. • A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $675, a price that represents a 25% discount from the regular Probook price of $900....
Most questions answered within 3 hours.
-
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 11 minutes ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 2 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 4 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 4 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 6 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 6 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 6 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 6 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 6 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 6 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 6 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 6 hours ago