Universal School Supply Retailer Essay

848 words - 4 pages

Universal School Supply Retailer, Inc (“USSR”) is a retailer of clothing, equipment, supplies, and other products targeted at students from grade school to college level. USSR is offering a promotion during August in which customers who spend a minimum of $100 will receive a $20gift card that can be applied to their next purchase at USSR. These gift cards expire on November 1 of the current year and cannot be redeemed for cash. The main issues involved in this situation are when to recognize the revenue associated with the gift cards and how to record the transaction. These issues are addressed by multiple sections of GAAP, including the following:
460-10-25 ...view middle of the document...

a. Relatively long periods in which a particular rebate or refund may be claimed. b. The absence of historical experience with similar types of sales incentive programs with similar products or the inability to apply such experience because of changing circumstances. c. The absence of a large volume of relatively homogeneous transactions. According to the case facts USSR has absence of historical experience.

many factors and circumstances that will vary from case to case. However, it does list the following as factors that may impair vendor’s ability to make a reasonable and reliable estimate:* Relatively long periods in which a particular rebate or refund can be claimed* The absence of historical experience with similar types of sales incentive programs with similar products* The absence of a large volume of relatively homogeneous transactions.
Based in this information USSR first alternative is record two transactions on the date of the purchase. For this scenario, we will recognize the full $20 as a liability, as the company does not have a historical experience and should recognize the large number possible as liability. In this case the journal entry will be
Cash/ AR $100
Sales/Revenue $80
Deferred Revenue $20

And the second JE

Direct cost of sales $50
Inventory $50

The effects in the balance sheet using this alternative is maximizing the potential liability, and reduce the revenue in the...

Other assignments on Universal School Supply Retailer

Leveraging The Cloud Essay

1752 words - 8 pages 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. 1.5x Explosion of information driving 54% growth in storage shipments every year. 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. $40 billion Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies

Sexist Language – How To Avoid Gender Inequality

1211 words - 5 pages , “Each student must supply their own packed lunch” and “Each student is aware that they must hand in their essay today,” even in school textbooks. (Kirkpatrick, 2011). However, what goes up must come down and with the adoption of nonsexist language came more inconsistencies due to words that contain “-ess”, such as waitress. For some reason the world of theatre is undecided. A female who appears in a motion picture is sometimes referred to as


8987 words - 36 pages legacy as a women’s specialty clothing retailer. Since 1954, Ann Taylor had been the wardrobe source for busy, socially upscale women, and the classic basic black dress and woman’s power suit with pearls were Ann Taylor staples. The Ann Taylor client base consisted of fashion-conscious women from age 25 to 55. The overall Ann Taylor concept was designed to appeal to professional women who had limited time to shop and who were attracted to Ann

Product Management

3905 words - 16 pages varies by type of grain, specific recipe, and size of loaf. The distinction between a new product and a minor modification to an existing product is not always clear. Certain products have a product life cycle in which the supply and demand for the product increases then decreases over time. The demand for certain food products such as bread will tend to increase with population, but the supply and demand for a specific brand of bread may decline

Slavery In The Chocolate Industry

3469 words - 14 pages abductees of mercenary dealers (children being the easiest targets) who for payment supply them to plantation landlords. From then on, the landlords' labour offers profit without expense; they treat their grim cargo essentially as beasts of burden, working them with no regard for their health or lives, giving them the bare minimum of food and shelter – and refusing them even that if they are uncooperative – and shutting them in like cattle when a

Term Paper-Lowe's Bd 10-Year

3561 words - 15 pages expansion of Lowe’s into Korea. This paper is intended to assist Lowe’s senior managers begin an assessment of expansion into the Asian market via Korea by highlighting key factors necessary for success. Company Overview Founded in 1946 and based in Mooresville, N.C., Lowe's is a FORTUNE® 100 company and is the second-largest home improvement retailer in the world. A summarized version of Lowe’s Vision, Mission, and Promise includes the


2471 words - 10 pages Semester One Mid-semester Examinations, 2015 MGTS1201 Computer-based Information Systems Venue Seat Number ________ Student Number |__|__|__|__|__|__|__|__| Family Name This exam paper must not be removed from the venue ____________________ _____________________ First Name _____________________ School of Business EXAMINATION Semester One Mid-semester Examinations, 2015 MGTS1201 Computer-based Information

Ikea's Global Sourcing Challenge - Indian Rugs

6420 words - 26 pages 9-906-414 REV: NOVEMBER 14, 2006 CHRISTOPHER A. BARTLETT VINCENT DESSAIN ANDERS SJÖMAN IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A) In May 1995, Marianne Barner faced a tough decision. After just two years with IKEA, the world’s largest furniture retailer, and less than a year into her job as business area manager for carpets, she was faced with the decision of cutting off one of the company’s major suppliers of

Business Plan

9539 words - 39 pages where we supply our product for selling. We need a proper advertisement to attract our customer or introduce our product to our customer. So we will give advertisements on paper, online and radio. Moreover we have planned to give lifeletin front of school, colleges and universities. We will attend fairs as if school, college and university fair. This all we will do to attract our customer. We have a plan to do environmental campaigns in which

Marketing Plan Of Bubble Tea

2527 words - 11 pages mature health-conscious customers. In addition, there is no existing food vendor who supply bubble tea and none of the bubble tea shop in Sheffield. 3.2 Company and product review 50Lan Ltd. entirely devoted to bubble tea and aims to offer high quality bubble tea (50Lan), similar to the Starbucks for caffee. The beverage is sealed the top of the cup with plastic cellophane by using a particular machine. This allows the tea to be shaken in the


7204 words - 29 pages contemporary India, Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources. He is also the president of the Dhirubhai Ambani Institute of Information and Communications Technology, Gandhinagar An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited with pioneering several financial

Similar Documents

Supply Chain Management Checkers Essay

3649 words - 15 pages Checkers Management 212- Essay 1 Word count: 2887 Table of Contents 1. Introduction: 3 2. Checkers Supply Chain network: 3 3. Typology of Checkers: 7 4. Comparison of the Checkers to a smaller retailer 10 5. Conclusion: 12 LIST OF REFERENCES: 13 PLAGIARISM DECLARATION 14 1. Introduction: This essay will be focusing of the supply network of checkers supermarket that is operated by the Shoprite holding Ltd is

Sports Obermeyers Essay

4231 words - 17 pages require higher minimum order quantity and they offer lower throughput and less quality compared to Hong Kong facility. Manufacturing at China also poses the risk of exceeding the stringent quota restrictions by U.S Government. Addendum 1 depicts the supply chain model for the Sports Obermeyer and here are some of Sport Obermeyer’s Competitive priorities that could affect the supply chain efficiency of the Sport Obermeyer. 1. Improving sales, profit

Dakota Office Products Essay

299 words - 2 pages Nedim Halilagic Prof. Ermin Cero ACCT 306 December 10, 2013 Dakota Office Products Dakota Office Products (DOP) is a regional office supply company with a strong reputation for customer service and quality supplies. Additionally, DOP is unafraid to adopt new service operations such as its “desk top” delivery option which delivered smaller orders directly to individual sites as we all as its traditional commercially delivered mass orders

Mc Donalds Production Operation Management Analysis Ahmedabad

2818 words - 12 pages solid waste its restaurants generated each day to counter some of the criticism, McDonald’s partnered with the Environmental defense fund to explore new ways to make its operations more friendly to the environment. INTRODUCTION McDonald’s is a limited menu restaurant is characterized by speed of operations. McDonald’s is the world leading retailer with more than 33,000 restaurants in 118 countries serving more than 67 million customers each day