Assume the following scenarios.Scenario 1: During 2021, IBM provides consulting services on its mainframe computer for $10,400 on account. The customer does notpay for those services until 2022.Scenario 2: On January 1, 2021, Gold's Gym sells a one-year membership for $1,155 cash. Normally, this type of membership wouldcost $1,540, but the company is offering a 25% “New Year's Resolution" discount.Scenario 3: During 2021, The Manitowoc Company provides shipbuilding services to the U.S. Navy for $360,000. The U.S. Navy willpay $120,000 at the end of each year for the next three years, beginning in 2021.Scenario 4: During 2021, Goodyear sells tires to customers on account for $28,400. By the end of the year, collections total $24,000.At the end of 2022, it becomes apparent that the remaining $4,400 will never be collected from customers.Required:For each scenario, calculate the amount of revenue to be recognized in 2021.Revenue recognized in2021Scenario 1Scenario 2Scenario 3Scenario 4

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Assume the following scenarios. Scenario 1: During 2021, IBM provides consulting services on its mainframe computer for $10,400 on account. The customer does not pay for those services until 2022. Scenario 2: On January 1, 2021, Gold's Gym sells a one-year membership for $1,155 cash. Normally, this type of membership would cost $1,540, but the company is offering a 25% “New Year's Resolution" discount. Scenario 3: During 2021, The Manitowoc Company provides shipbuilding services to the U.S. Navy for $360,00O. The U.S. Navy will pay $120,000 at the end of each year for the next three years, beginning in 2021.

Assume the following scenarios. Scenario 1: During 2021, IBM provides consulting services on its mainframe computer for $10,400 on account. The customer does not pay for those services until 2022. Scenario 2: On January 1, 2021, Gold's Gym sells a one-year membership for $1,155 cash. Normally, this type of membership would cost $1,540, but the company is offering a 25% “New Year's Resolution" discount. Scenario 3: During 2021, The Manitowoc Company provides shipbuilding services to the U.S. Navy for $360,00O. The U.S. Navy will pay $120,000 at the end of each year for the next three years, beginning in 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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