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Inventory Valuation part 2




Inventory Valuation part 2;Discuss the revenue principle and the matching principle as per the generally accepted accounting principles (GAAP).;Contrast the percentage-of-completion method of revenue recognition versus the completed contract method.;Solve this accounting problem for the ABC grocery company relating to revenue and expense recognition as per GAAP: ABC Corporation uses the percentage-of-completion method of accounting. In 2010, ABC entered into a contract for a contract price of $2,000,000.;2010;Costs incurred during the year;600,000;Estimated costs to complete as of Dec 31;900,000;Billings during the year;400,000;Collections during the year;300,000;What portion of the total contract price is recognized as revenue in 2010?;What is the profit recognized for 2010?;Prepare the journal entries for 2010 under the percentage completion method


Paper#28639 | Written in 18-Jul-2015

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