Description of this paper

Bentley Corporation has several divisions. All ope...




Bentley Corporation has several divisions. All operations keep their own accounting books and have chosen the appropriate method of revenue recognition. Information on Divisions: Bargain Electronics Division Bargain Electronics Division sells computers through agents in various cities. Revenue is recognized at the point of sales. Agents send orders and down payments to our company. The division then ships the goods F.O.B. shipping point directly to the customers. Additional Financial Data: Orders for fiscal year 2012 $600,000 Down Payments collected in 2012 $550,000 Billed and shipped in 2012 $520,000 Freight billed in 2012 $12,000 Commissions paid to Agents (after ship to customer) 8% Warranty Returns as % of Sales 1% Barry's Construction Division The Barry Construction Division was working on one project and used the percentage of completion revenue recognition method for 2012 fiscal year. Contract for new retail mall building Total Contract Amount $54,000,000 Contract Grant Date August 14, 2012 Construction Began September 1, 2012 Estimated Cost to Complete at beginning of contract $40,000,000 Estimated Time to Complete Project 2 years As of December 31, 2012 Construction costs incurred to date $10,600,000 Billings to date $12,000,000 Expected costs to complete $31,800,000 Bead's Magazine Distribution Division Our magazine distribution division sells to national quickmart stores. Our division allows for up to 30% of sales in returns. For the past 4 years, returns have averaged 26%. We record revenue based on revenue recognition when the right of return exists. Total Sales for 2012 $7,000,000 Sales Still Available for return for 6 months $2,100,000 Actual Returns on Sales not returnable 25% 2011 Sales collected in 2012 $1,200,000 2011 Sales returned in 2012 23% Required: Calculate the revenue to be recognized in fiscal year 2012 for each division of Bentley Corporation in accordance with generally accepted accounting principles. Show all calculations for full credit. (Points : 40)


Paper#6524 | Written in 18-Jul-2015

Price : $25