Gross method: Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales. Net method: Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts. To select: The best time for recording the sales revenue in net method.

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Answer 1

Question

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

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Answer 2

Question

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

Answer 6

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

Answer 7

Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - When is revenue recognized?Ch. 5 - When is a performance obligation satisfied?Ch. 5 - At what amount should sales revenue be recorded...Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Why is the direct write-off method not GAAP?

Solution Summary: The author explains the difference between the gross and net methods of recording sales revenue.

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